Frost gang Report: Phillip Frost’s Legal Quagmire

Copyright 2020 by Lee Pederson1

Authored by: Lee Pederson

LeeMPete@aol.com
Date: June 14, 2020

Version 10.42

detail from “Vision of Hell” by Heironymous Bosch

1
The author grants each user the right to view and read this Frost gang Report on the scribd website.
This Frost gang Report is otherwise protected by copyright law. To create, transfer, download or print any
copy of this Frost gang Report or portion thereof, the user must first negotiate and obtain a license by
contacting the author via email.
2
In the eight-plus years that I have been investigating, collecting, organizing, cataloguing and
synthesizing information about the Frost gang, I have used a variety of methods to organize and publish
my work. This Frost gang Report is somewhat arbitrarily labeled Version 10.4 to indicate that it is hardly
the first version, but that it is still a work-in-progress. This status as a work-in-progress will become
abundantly clear to anyone reading or using this Report. The present form is intended to be useful to
those who have been affected by the actions of the Frost gang, those who are dealing with the
consequences of those actions, and those who are interested in seeing changes in the environment
where the Frost gang and entities like them have operated for the last decade. Further, I note that
exposing the Frost gang is a collective and iterative process. Therefore, I am publishing this incomplete
and unpolished document in the belief that it will speed up the process of bringing justice to a number of
situations that have been created by the bad acts of Frost and his henchmen.

1
CONTENTS
SECTION I: Introduction to Phillip Frost and the Frost gang ……………..……...…… 5

SECTION II: Introduction to this Frost gang Report …………………………….…….. 8

SECTION III: Frost gang civil litigation, investigations and enforcement actions …… 12
III - 1 - Dan Fisher litigation
III - 2 - Lee Pederson litigation
III - 3 - ​SEC v Honig
III - 4 - OPK
III - 5 - BioZone/COCP
III - 6 - PTE
III - 7 - RIOT
III - 8 - AWSM
III - 9 - Laidlaw & Company
III - 10 - LTS
III - 11 - TEVA
III - 12 - ELOX
III - 13 - Other companies named in investigations or litigation
III - 14 - Litigation to silence journalists and critics - 201x to
III - 15 - ​ Kesner v Barron’s, Alpert and Buhl
III - 16 - (Lack of ) Defamation suits against Lee Pederson
III - 17 - YesDTC
III - 18 - MBVX
III - 19 - DOJ criminal investigation
III - 20 - SEC OIG investigation
III - 21 - ​Pederson v Clayton
III - 22 - Possible new SEC charges
III - 23 - Pederson whistleblower complaint against Frost
III - 24 - MGTI
III - 25 - Kesner v Baker Botts

SECTION IV: Frost gang people, companies, entities and methods ……… ……….... 28
IV - 1 - Frost gang members and associates ………………………………………….. 28
A- Phillip Frost
B- Harvey Kesner
C- Barry Honig
D- Michael Brauser
E- John Stetson
F- John O’Rourke
G- Mark Groussman
H- Steve Rubin
I- Jane Hsaio
(more)

2
IV - 2 - Frost gang companies ……………………………………………………….. 32
A- BZNE/COCP
B- COOL/PTE
C- OPK
D- RDVT
E- LTS
F- MBVX
(more)
IV - 3 - List of Frost gang investment and control entities
IV - 4 - List of Frost gang attorneys and accountants.
IV - 5 - List of Frost gang stock promoters
IV - 6 - List of Frost gang transfer agents
IV - 7 - List of Frost gang investment banks
IV - 8 - List of Frost gang hedge funds

SECTION V: Frost gang market manipulation methods and enablers ……………….. 43

SECTION VI: Federal Crimes of Frost gang members ………………………………. 51

VI - 1: Statute of Limitations issues
VI - 2: RICO
VI - 3: YesDTC Securities Fraud
VI - 4: BioZone Securities Fraud
VI - 5: MabVax Securities Fraud
VI - 6: PolarityTE Securities Fraud …………………………………………………… 53
VI - 7: Other Securities Frauds (within statute of limitations)
VI - 8: Other Securities Frauds (outside statute of limitations)
VI - 9: Bribery at BioZone / Cocrystal ……………………………………………….... 60
VI - 10: Possible Bribery at MabVax
VI - 11: Obstruction of Justice at BioZone / Cocrystal
VI - 12: Witness Tampering at BioZone / Cocrystal
VI - 13: Wire Fraud

SECTION VII: Hypothesis that Frost illegally sold OPK and TEVA
short on the Tel Aviv Stock Exchange (TASE)................................................................ 69

SECTION VIII: Further reading and links ……………………………………………. 72

SECTION IX: Barry Honig fraud networks (moved to separate Team Honig Report) . 73

SECTION X: Other related networks (moved to separate Team Honig Report) …….. 73

SECTION XI: Investigating the Frost gang …………………………………………... 75

SECTION XII: The Frost gang’s “Short and Distort” narrative …………….………… 77

3
SECTION XIII: The current regulatory and enforcement environment ……………… 78

Summary and Conclusion ……………………………………………………………... 78

APPENDIX

Part 1- Frost gang timeline ………………………………………………………….... 79

Part 2- List of Frost gang companies named as parties in civil litigation

involving alleged fraud …………………………

Part 3- List of Frost gang members and associates named as parties

in civil litigation involving alleged fraud ………………………

Part 4- List of Frost gang entities named as parties

in civil litigation involving alleged fraud ………………………...

Part 5- List of attorneys litigating against the Frost gang ………

4
 SECTION I - Introduction to Phillip Frost and the Frost gang

Billionaire fraudster Phillip Frost’s attorneys recently described Phillip Frost in the first
paragraph of a lawsuit in which Frost is the plaintiff:3

In another lawsuit, where Frost is a defendant, the plaintiffs described him in similarly
flattering terms:4

According to Frost’s wikipedia page,5 Frost’s philanthropy includes:

“​On October 16, 2003, a $33 million gift to the School of Music was announced by the
University of Miami. In honor of their bequest, the largest ever given to a university-based music
school in the U.S. at the time, the School of Music was officially renamed the ​Phillip and Patricia

3
​Frost v LTS
4

https://www.blbglaw.com/cases/opko-health-inc/_res/id=Attachments/index=0/2019-05-03%20Dkt%2073
%20-%20Consolidated%20Complaint.pdf
5
As of February 9, 2020

5
Frost School of Music​. In 2003, the Art Museum at ​Florida International University​ was
officially renamed ​The Patricia & Phillip Frost Art Museum​. On March 26, 2011, it was
announced that Frost had donated $35 million towards the construction of the new ​Miami
Science Museum​ building at ​Bicentennial Park​ in ​Downtown Miami​, named the ​Phillip and
Patricia Frost Museum of Science​. In March 2015, he donated an additional $10 million to
support the development of the science museums' planetarium, the Frost Planetarium.
He serves on the board of regents of the ​Smithsonian Institution​, as a member of the
board of trustees of the ​University of Miami​, of the ​Scripps Research Institute​, the Miami Jewish
Home for the Aged, chairman of the board of ​Temple Emanu-El (Miami Beach, Florida)​, and the
Mount Sinai Medical Center​.”
My own experiences with Frost do not match these glowing descriptions. In fact, Frost’s
reputation was the key element in an elaborate deception against me and others that went on for
more than a year before I realized that Frost and his gang were lying to me. There are clearly
multiple sides to Phillip Frost. What you see is not always what you get.
The SEC also painted a different version of Frost’s personna when it announced
securities fraud charges against Frost and his gang:6

Billionaire fraudster Phillip Frost is the head of a white collar gang that specializes in
market manipulation and securities frauds, especially pump and dump (P&D) securities frauds.7
The Frost gang includes Frost, Barry Honig, Harvey Kesner, Michael Brauser, John Stetson,
John O’Rourke, Mark Groussman, Steve Rubin, Jane Hsaio, and many others. Members of the
gang have committed frauds at numerous public companies. Frost is the richest. most famous,
most powerful, and most influential member in the Frost gang. Many Frost gang companies and
operations are located the IVAX building on Biscayne Boulevard in Miami. Frost owns the
IVAX building. As explained in Section VI, Frost’s financial motives and interests are bigger
than those of any other member of the gang. The frauds of the Frost gang have resulted in a
wide range of civil litigation, federal investigations, federal enforcement actions, and media
reports.
Frost’s net worth was estimated to be about $4.9 billion in 2018.8 His current net worth
is estimated to be about $1.7 billion.9 Along with his net worth, Phillip Frost’s perceived stature
has fallen considerably since the SEC filed securities fraud charges against him and publicly
labeled him as a “fraudster” on September 7, 2018.
Dan Fisher filed the first litigation exposing the Frost gang in 2012. When I began
collaborating with Fisher in 2014, Dan’s words were prophetic. Dan said that it would take a
three-prong strategy to completely unmask Frost and his gang. Fisher’s two lawsuits against the
Frost gang represented the first prong of the strategy (civil litigation), and were the initial driving

6
​https://www.sec.gov/litigation/litreleases/2018/lr24262.htm
7
Securities fraud is a federal crime, punishable by up to 20 years in prison.
8
​https://en.wikipedia.org/w/index.php?title=Phillip_Frost&oldid=856780387
9
​https://en.wikipedia.org/wiki/Phillip_Frost

6
force of the entire strategy. The second prong was federal investigation and enforcement, and
Dan and I were the primary catalysts in the process that eventually led to the filing of​ SEC v
Honig et al.​ The third prong was media coverage of the gang’s fraudulent activities. Such
media coverage was extremely hard to come by in the beginning, but that has started to change.
Frost and his henchmen built an organization that has been difficult to bring down. Their
primary bulwark has been Frost’s vast wealth and his reputation as a successful businessman and
philanthropist. For both Dan Fisher and myself, Frost’s reputation allowed Frost to deceive us
long past the point where we would ordinarily have known that we were being lied to. It simply
did not make any sense to either of us that someone in Frost’s position would be leading a
fraudulent and criminal organization. Other strengths of the Frost gang were: their ability to
co-opt individuals into their frauds with the promise of financial rewards,10 their strategy of
silencing critics and reporters with litigation and the threat of litigation, Frost’s ability to control
ownership and management of public companies, their network of puppet officers and directors
to install in Frost gang companies, Frost’s ability to financially bail out companies when frauds
began to unravel,11 and Frost’s ability to dictate publicity and press coverage.
Many layers of the Frost gang’s frauds have been peeled away over the last couple years,
and more layers are revealed almost every week by civil litigation, federal investigations and
enforcement, and media coverage. Frost still has the money and power to direct armies of
lawyers, though now he is sometimes forced to pay the lawyers himself rather than using the
corporate treasuries of companies he controls.12 Similarly, Frost is still able to manipulate the
media by paying public relations / crisis management “fixers” like Sard Verbinnen, but the days
of Frost getting free and favorable media coverage in publications like ​ Forbes​ are long gone. It
is only a matter of time before the collapse of the Frost gang is complete.
Frost has consented to judgment and paid a $5 million fine as a result of securities fraud
charges in ​SEC v Honig.​ 13 As Bill Alpert wrote in ​Barron’s,​ those charges by the SEC may be
only the “tip of the iceberg.”14 Frost and his gang have done many dirty deeds at dozens of
public companies, so there is a lot of ground to cover in this report. I write to offer my
observations and opinions to anyone who is interested in the fraudulent and illegal activities of
Phillip Frost and the Frost gang.

Comments on the Roles of Barry Honig and Michael Brauser

This report focuses on a series of frauds that began in about 2010 and continued until
about early 2019. During this time, billionaire Phillip Frost associated himself closely with

10
For example, Brian Keller associated himself with the Frost gang in the BioZone P&D.
11
As examples, Frost bailed out IDI with $47 million to merge with Fluent, and Frost has kept COCP
solvent with a series of private placements.
12
On October 25, 2019, OPK filed a prospectus with the SEC. Page S-31 of that prospectus stated that,
“​Our primary and side A directors and officers’ liability insurance carrier has denied coverage
for the class action and derivative suits filed against us and our directors and officers concerning
the allegations in the Complaint.”
13

https://www.genengnews.com/news/opko-health-ceo-and-chairman-agree-to-pay-5-6m-to-settle-sec-stoc
k-allegations/​ (December 28, 2018 news story)
14
​https://www.barrons.com/articles/sec-charges-phillip-frost-1536608366​ (​Barron’s​ article)

7
Barry Honig and Michael Brauser. Frost came to the association bringing vast wealth, power,
and his own extensive network of people and connections, including Steve Rubin, Jane Hsaio,
Roberto Prego-Novo and others. Honig and Brauser came to the association with a checkered
past, but they had a network of people and connections specialized to do illegal stock promotion
and market manipulation. Honig did the YesDTC P&D before 2010, and he has continued with
more frauds even after his close association with Frost apparently ended.
I refer to the 2010-2019 association between Frost, Honig, Brauser and their networks as
the “Frost gang.” This is mainly a result of two things. First, Frost’s involvement in the
BioZone P&D affected me personally far more than Honig’s and Brauser’s involvement. While
I was somewhat aware of Honig’s and Brauser’s sketchy backgrounds during the “Big Lie”
period at BioZone from early 2011 to early 2012, it was the presence of Frost in the deal that
convinced me to believe the false promise that the Frost gang would fund BioZone’s R&D
program. Second, I believe that Frost had motives to associate with Honig and Brauser beyond
just participating in Honig’s standard P&D deals. My hypothesis on Frost’s larger motives is
described in section VI of this Report.
Journalist Teri Buhl generally uses the term “Team Honig” instead of the term “Frost
gang.” There are valid reasons for this, mainly that Honig and his various crews have done a
number of P&D’s without any apparent participation by Frost. In addition to “Frost gang” and
“Team Honig”, the “Frost-Honig gang” is also an accurate term for the organization described in
this Report.
This Report somewhat blurs the lines between the Frost gang and Team Honig.
However, the segue from Honig’s YesDTC P&D securities fraud to the Frost gang’s BioZone
P&D provided a path for federal investigators and journalist Teri Buhl to follow. Also, in some
situations, Frost did not appear in the SEC filings or media reports, but he clearly was the source
of important connections behind the scenes.15 Most of this Report deals with situations where
both the Frost network and the Honig network were involved. Sections VI - 9 and VII of this
Report deals with situations specific to Frost. Section IX and Section X have now been removed
to a separate Team Honig Report. The Team Honig Report deals with frauds possibly connected
to Honig that may be only tangentially relevant to the Frost gang.

SECTION II - Introduction to this Frost gang Report

I first came into contact with Frost and his gang in about February of 2011 when I flew
from Minnesota to Miami for a week of business meetings at Frost’s IVAX building. I was
working as outside patent counsel to a company called BioZone. Over the ten years I had
worked with BioZone, BioZone had developed a proprietary drug delivery platform technology
capable of reformulating many existing drugs. BioZone needed capital to grow its R&D and
manufacturing capabilities, and the Frost gang falsely promised that capital to BioZone.
Unfortunately, those 2011 false promises (the “Big Lie”) just marked the beginning of seemingly
limitless excretion of lies and frauds by Phillip Frost and his henchmen. This report is heavily
informed and influenced by my own personal experiences with Phillip Frost and the Frost gang.

15
E.g. TRPX.

8
 The information in this report has been collected from a variety of sources, and I want to
thank the contributors. First and foremost, I want to thank Teri Buhl. Teri’s reporting at
teribuhl.com has been instrumental in exposing key aspects of the Frost gang. She is a journalist
in the truest sense of the word. Next, I offer thanks to Bill Alpert at ​Barron’s​. Third, I offer
thanks to Chris Carey of sharesleuth.com. Many other business and science writers have also
made valuable contributions. This category includes Hindenburg Research (Nate Anderson),
Research Noir, Ozgur Ogut and others. Finally, I want to thank those who have reached out to
me by phone, email and direct messages. Your information and support has been invaluable.
Most of the details about the frauds and crimes of Phillip Frost and the Frost gang are still
hidden. Of course, Frost never intended this information to become public in the first place.
Now that details are starting to come into the open, there are legal implications and layers of
lawyers regarding almost every aspect of the Frost gang. Federal investigations are confidential
by nature. The Frost gang uses the assertions of attorney/client privilege to try to protect
information about their frauds and crimes from discovery. Writers and reporters have to be
cognizant of the potential for legal assaults by the Frost gang, since even baseless legal claims
can exact a toll on their targets. Courts hearing Frost gang cases tend to seal information when a
party requests that the information be sealed. My own situation is complicated by duties to
former clients and the courts where my cases are being heard, as well as strategic considerations
in my game of chess against Phillip Frost. Therefore, there are many documents in existence that
are not available to publish in this report. I am even withholding some documents that I have
prepared because of strategic reasons. However, over time much more will be revealed.
The Frost gang’s frauds are typically highly complex and compartmentalized. The
various components of each fraud often appear innocuous when viewed in isolation. Since this
report deals mainly with cataloguing the components of numerous interconnected financial
frauds, I admit that the following pages are often pretty dry reading. However, the stories of the
individual frauds can be quite interesting. Most of the fraud stories involve strong personalities
playing around with technologies and money in the crazy world of biotech and high tech start up
companies. The members of the Frost gang are colorful characters and it can be entertaining to
see their diabolically greedy plans unfold, in somewhat the same way that the book “Helter
Skelter” is entertaining. This is definitely not about fun and games. People are hurt by the
frauds. The stories are about Frost and others doing bad things, with the belief that they will
never be held accountable for their actions. In any event, for those who are interested in
complete, coherent, and detailed descriptions of the Frost gang’s frauds, they will mostly have to
go to documents that are referenced herein, but not included in this report. In my view, the most
interesting and entertaining Frost gang fraud stories include:
1- BioZone pump and dump as described in the original complaint for ​SEC v Honig​ (BioZone is
“Company A”).
2- BioZone pump and dump as described in my amended complaint for ​Pederson v Frost I.
3- MabVax pump and dump as described in ​MabVax v Sichenzia ​and ​MabVax v Honig.​
4- PolarityTE pump and dump as described in the PTE class action consolidated complaint.
5- Phillip Frost short seller hypothesis as described in Section VI of this report.
6- YesDTC pump and dump as described in the Joseph Noel plea agreement.
7- The fraudulent takeover of BioZone as described in Dan Fisher’s second amended complaint
in ​Fisher v BioZone.
8- Stories written by Teri Buhl, Bill Alpert and Chris Carey.

9
9- Harvey Kesner’s complaint in ​Kesner v Baker Botts.​ Though this document is a pack of lies,
it is somewhat interesting if you like desperate unhinged legal raving.

With that being said, I now turn to the more mundane task of explaining the nuts and
bolts of the Frost gang’s criminal organization.
This report contains several sections. Sections I and II are introductory to Phillip Frost,
the Frost gang, and to this Frost gang Report.
Section III includes various categories of litigation, investigations, enforcement actions,
and suspicious activities involving Frost and/or the Frost gang. While Frost himself is not
directly implicated in all the activities described, the actions of Frost’s accomplices, agents, and
co-conspirators often shed light on Frost’s own motives and methods. In many of the categories,
Frost has clear responsibility, civil liability, and criminal culpability for the illegal actions
described.
Section IV provides lists of people, companies and entities involved in the Frost gang
network, including: (1) a list of Frost gang members and associates with descriptions of their
roles in the Frost gang, and (2) a list of companies associated with the Frost gang with
descriptions of illegal and/or suspicious Frost gang activities at those companies.
Section V includes a list of market manipulation techniques and enablers with
descriptions of how these have been involved in Frost gang activities.
Section VI lists and explains Federal crimes committed by Frost gang members.
Section VII explains my hypothesis that Frost may have profited by illegally short-selling
companies he controlled.
Section VIII provides links for further information on Frost and his gang.
Section IX provides information on fraud networks operated by gang member Barry
Honig, where the frauds were apparently separate from the interest and control of Phillip Frost.
Section X provides information on other networks that have some degree of separation
from both Frost and Honig.
(Note: Most of the contents of sections IX and X have been moved to a separate “Team
Honig Report.”)
Section XI provides information on the process of investigating and exposing the Frost
gang’s fraudulent and illegal activities.
Section XII describes the Frost gang’s efforts to deflect and discredit critics by alleging
that critics are involved in illegal short selling.
Section XIII describes the current regulatory and enforcement environment that has
allowed the Frost gang to perpetrate their frauds and crimes for the last decade.

The complexity of the frauds and the numbers of individuals, companies and entities
presents a challenge in preparing this report. I have tried to strike a balance between
completeness and not over-describing details. Details are crucial in regards to every particular
fraud, but the reader must find them by following links to original documents, and even within
this Report itself. For example, information and links about PolarityTE (PTE) are spread out
between many sections of this Report: civil litigation (Section III - 1 - 6), crimes (Section VI -
6), corporate red flags (Section iv - 2 -B), short and distort narrative (Section XII), and other
places. Therefore, I have adopted a convention that is intended to help the reader put the pieces
together for themselves when connections are not explained or explicitly referenced in this

10
Report. In the lists of individuals, entities and companies, keyword identifiers in the entry
prefaced with a plus sign (+) are linked in an unspecified manner to the name on the list. For
example, Opko Health (OPK) is listed at section IV - 2 - C. In the OPK entry “+Phillip Frost” is
shown. This means that there are one or more connections between OPK and Phillip Frost. The
reader can search this document to find other mentions of Frost to see how Frost fits into the
OPK situation. The reader can also google -OPK Phillip Frost- to search the internet for
connections between OPK and Phillip Frost.
Frost and the members of the Frost gang engage in a wide range of business activities,
ranging from completely legitimate operations to criminal fraud. The mere mention of a person,
company or entity in this report does not by itself indicate that I believe or represent that the
person, company or entity has engaged in fraudulent or illegal activity, or that any particular
action or activity described is fraudulent or illegal. Though guilt by association can sometimes
be inferred by context, it is not a universal rule.
This Frost gang Report is not comprehensive, complete, up-to-date, or fully referenced.
It is meant to be updated over time. Further, this report contains opinions and speculations in
addition to publicly known facts and information. It is my hope that this report will be useful for
those who are interested in exploring and understanding the nature and scope of the illegal
activities of Phillip Frost and his gang.

Comments on Using this Report for your Own Purposes

I began compiling this report for two main purposes: (1) to organize a mass of material
for my own benefit; and (2) to share this information with others. This Report is primarily a
reference manual. I expect that few people will read it from cover to cover and retain all the
details in their memory. Rather, I expect that most users will come to this Report with specific
situations and questions in mind. For these users, I suggest that an efficient method of using this
Report is simply to search for keywords, such as the names of individuals or companies. Many
sections of the report have been tagged with key words to facilitate such searching.
The scribd reader provides a search tool. If the information you seek is in this Report,
using the search tool may be the quickest and easiest way to find what you are looking for. To
use the scribd search tool, make sure that the cursor is on the document to be searched. Then
type “control f.” The search tool will appear in the upper right corner of your screen.
Unfortunately, the search tool will not find words in screen shots.

11
 SECTION III - Litigation, investigations and enforcement actions

The frauds of the Frost gang have given rise to extensive civil litigation. At least seven
publicly traded Frost gang companies have been named as defendants (so far).16 By my count,
37 Frost gang members and associates have been named as defendants (so far), with many of
these individuals named in multiple lawsuits.17 More than 14 Frost gang entities have been
named as defendants (so far), with many of these entities named in multiple lawsuits.18
The Frost gang has fought each and every case aggressively. In most cases they
outmatch their courtroom opponents both in resources and intensity, even when they are dealing
with the SEC or DOJ. Sometimes this has resulted in outcomes favorable to the gang. The
SEC’s decision not to take enforcement against RIOT is one such example. The voluntary
dismissal of the MBVX class action is another. To me, these are not proofs that the Frost gang is
innocent of the alleged frauds. It simply indicates that they were able to outmaneuver their
opponents with a combination of legal maneuvering, stonewalling, and perhaps some dirty tricks.
In the case of the MBVX class action dismissal, the gang’s maneuvering may even have
involved misleading a federal judge.19
Regardless of the outcome in any particular case, there is no doubt that Frost gang
members and associates have participated in numerous frauds. 18 out of 18 Frost gang members,
associates and entities prosecuted for the BioZone P&D by the SEC in ​SEC v Honig​ have now
fully settled, partially settled, or have agreed to settle with the SEC. Dan Fisher has obtained
settlements in two cases against the Frost gang. Three lawsuits have settled after the Frost gang
sued to silence a journalist or business writer. No Frost gang fraud case has yet gone to trial.
To my knowledge, no Frost gang member has yet been deposed in a proceeding where the
deposition transcript has become public.
The DOJ has not yet broughty any criminal charges against Frost gang members, though
they have been investigating Frost and his henchmen since at least 2014. While the DOJ does
not reveal its intentions, it seems likely that their investigations will inevitably lead to criminal
charges against Frost gang members, especially in light of the detailed allegations of fraud and
descriptions of evidence in ​SEC v Honig.​ RICO charges are possible.
More civil cases are also highly likely. There is already sufficient publicly available
evidence of scientific and securities frauds at PTE for the SEC to obtain verdicts in civil trials.
As in the BioZone P&D, the existence of scientific frauds makes the PTE securities frauds much
easier to prove.20 The most explosive potential Frost gang cases on the horizon relate to possible
illegal short selling by Frost at OPK and/or TEVA.21

16
See Appendix, Part 2.
17
See Appendix, Part 3.
18
See Appendix, Part 4.
19
See item 9 regarding the John Lemak situation in
https://www.scribd.com/document/444968454/200130-Open-Letter-From-Lee-Pederson-Re-Kesner-v-Bak
er-Botts-Lawsuit
20
At both BioZone and PolarityTE, the “pump” in the initial pump and dump relied heavily upon easily
disproved claims about the company’s technology.
21

https://www.scribd.com/document/442844286/200113-Follow-up-to-Frost-as-OPK-Short-seller-Hypothesi
s

12
 In addition to the civil caes being brought against Frost gang members and entities as
Defendants, some gang members have initiated their own litigation.
The existing Frost gang fraud litigation will continue for some time. I imagine that this
litigation is occupying a significant portion of Frost’s time. Frost has to deal with ongoing
lawsuits where he is an individual defendant, lawsuits where OPK is a defendant, lawsuits where
COCP is a defendant, and lawsuits where his investment trust ( FGIT) is a defendant. Frost has
to deal with potential new SEC charges (e.g., PTE). Frost has to deal with colleagues and
associates who may decide to strike plea deals with the DOJ to testify against him in criminal
proceedings. Finally, Frost has to deal with the effects that all this will have on his reputation
and legacy. The Frost gang saga is far from over, and many people are interested in seeing how
it plays out. An earlier version of this section was published online as a document entitled
“Phillip Frost’s Legal Quagmire”22 and has been accessed over 1,200 times since I posted it on
January 6. It’s clear that I am not the only person with a stake in how the wheels of justice
process this complicated situation that Frost’s misdeeds have produced.

III - 1: Dan Fisher litigation

A- ​ Fisher v BioZone​ (N.D.Cal.) (“Fisher Federal litigation”)
i. Docket
https://www.courtlistener.com/docket/5943256/fisher-v-biozone-pharmaceuticals-inc/?filed_afte
r=&filed_before=&entry_gte=&entry_lte=&order_by=asc
ii. This case was filed on July 16, 2012 and involved the fraudulent takeover of BioZone
Laboratories, Inc. by the Frost gang. The case initially settled in September of 2013 with Fisher
receiving about $2 million. The case was reopened in December of 2016 after Teri Buhl
reported that the FBI was investigating the Frost gang,23 with the gang alleging that Fisher
breached the non-disparagement clause in the settlement agreement. The case settled again in
February of 2018 concurrently with the Garcia Properties litigation.
B- ​580 Garcia Properties LLC v BioZone​ (“Garcia Properties litigation”)

III - 2: Lee Pederson litigation

A- ​Pederson v Frost I​ (pvf1) Minnesota Federal District Court
i. Amended complaint (filed on February 14, 2018. Note that this case was initiated in
November 2017 by pocket service of the original complaint on Brian Keller under the Minnesota
Rules of Civil Procedure)
https://www.scribd.com/document/374185521/Pederson-v-Frost-amended-complaint-filed-Febru
ary-14-2018​ (pvf1 amended complaint)
ii. Defendants’ Motion to Dismiss ​Pederson v Frost I (​ pvf1) based on lack of personal
jurisdiction was granted by the district court and then upheld by the 8th Circuit Court of Appeals.
A Petition for Writ of Certiorari is due at the United States Supreme Court on July 13, 2020.

B- ​Pederson v Frost II (​ pvf2) Minnesota Federal District Court

22
​https://www.scribd.com/document/441899691/200106-Phillip-Frost-s-Legal-Quagmire
This document served as the basis of this litigation section of this version of this Frost gang Report.
23

https://www.teribuhl.com/2019/05/22/sec-admits-team-honig-is-under-the-criminal-investigation-i-warned-
about-in-2016/​ (May 22, 2019 Teri Buhl story)

13
i. ​Pederson v Frost II​ (pvf2) has been stayed pending the appeal of pvf1.
ii. Complaint (filed on ------
https://www.courtlistener.com/recap/gov.uscourts.mnd.181288/gov.uscourts.mnd.181288.1.0.pdf
(pvf2 complaint)
C- These lawsuits will continue for some time, though the exact legal procedures are
unknown right now. Among the possible procedural options are trial in Minnesota Federal
District Court, appealing the issue of jurisdiction to the U.S. Supreme Court, and refiling pvf2 in
Florida Federal District Court.

III - 3: S​ EC v Honig
SEC v Honig i​ s the first major enforcement action by the Feds against the Frost gang.
A- SEC press release and complaints
https://www.sec.gov/litigation/litreleases/2018/lr24262.htm​ (SEC press release, Sept 7, 2018)
https://www.sec.gov/litigation/complaints/2018/comp24262.pdf​ (original complaint, Sept 7,
2018)
https://www.sec.gov/litigation/complaints/2019/comp24431.pdf​ (amended complaint)
The SEC has alleged that the defendants (10 individuals and 10 entities) violated federal
securities laws by conducting pump and dump (P&D) securities frauds at three companies:
“Company A” (BioZone/BZNE), Company B” (MGTI), and “Company C” (MabVax/MBVX).
B- Status of defendants
The following defendants have reached complete settlements with the SEC in this case:
Frost/FGIT (Frost Gamma Investment Trust) paid about $5.4 million. OPK paid $100 thousand.
Alpha Capital Anstalt paid about $957 thousand. Mark Groussman/Melechdavid paid about
$1.38 million. John O’Rourke/ATG Capital paid about $1.15 million. John Stetson/Stetson
Capital Investments/HS Contrarian Investments will pay about $1.15 million. Michael
Brauser/Grander Holdings will pay about $1.17 million.
The following defendants have reached partial settlements with the SEC, with the amount
to be paid as yet undetermined: John Ford, Brian Keller, Elliot Maza, Barry Honig/GRQ
Consultants.
Robert Lad is the last remaining defendant. Ladd was not involved in the P&Ds at
BioZone or MabVax, and he is not a member of the Frost gang.
19 of the 20 defendants in SEC v Honig were involved in the BioZone P&D. Charges
against Southern Biotech were dropped because that entity had been dissolved before the
litigation started. 18 out of 18 individuals and entities charged and prosecuted for the BioZone
P&D consented to judgment.
C- Documents of special interest from the ​SEC v Honig c​ ase file:
i- Subpoena to Ben Brauser naming 33 companies and about 63 individuals related to the Frost
gang:
https://www.scribd.com/document/438274110/Michael-Brauser-Family-SEC-Subpoena-9-30-19
ii- The SEC disclosed that they have collected over 4 million documents in the preparation of
their case.
https://www.scribd.com/document/432570438/SEC-Subpoena-List-in-Barry-Honig-Investigation
-10-28-19​ (SEC’s document list)
iii- The parties discussed the existence of a DOJ investigation during a May 15, 2019 hearing:
https://www.scribd.com/document/411279656/May-15-2019-SEC-v-Honig-Discovery-Hearing

14
iv- The SEC submitted a letter to the judge stating that the SEC is continuing to investigate the
Frost gang for conduct that post-dates the charges in ​SEC v Honig.24
v. I wrote an open letter (from Lee Pederson) to Judge Edgardo Ramos objecting to Phillip
Frost’s settlement agreement.
https://www.scribd.com/document/396558127/Open-Letter-to-Judge-Ramos-Re-Frost-SEC-Settl
ement
vi. December 17, 2019 Stipulation and Order showing that Frost, OPK and Steve Rubin are
providing docs to the SEC as third parties.
https://www.courtlistener.com/recap/gov.uscourts.nysd.500558/gov.uscourts.nysd.500558.204.0.
pdf
vii. ​Court filing in ​SEC v Honig​ listing 39 individuals and entities on which the SEC is seeking
discovery.
https://www.scribd.com/document/422537292/Robert-Ladd-Answer-to-SEC-Discovery-Request
-8-19-19
viii. Doc #204 showing that Opko, Frost, FGIT and Steve Rubin were still producing docs to the
SEC as of December 16, 2019:
https://www.courtlistener.com/recap/gov.uscourts.nysd.500558/gov.uscourts.nysd.500558.204.0.
pdf

III - 4: Opko Health (OPK)

A- ​Steinberg v Opko​ (FLSD 1:19-cv-20502-JEM​) ​This Opko class action lawsuit has
been consolidated from numerous initial complaints. Frost is named as a defendant.The
120-page consolidated class action complaint was filed May 3, 2019 and can be seen at:
http://securities.stanford.edu/filings-documents/1067/OHI200_02/201953_r01c_18CV23786.pdf

According to the Stanford Class Action Clearinghouse, “​The parties notified the Court that
they had reached a Settlement in principle on May 29, 2020.”

B- Plaintiff Connie Wendt has sued Frost for frauds at OPKO, RIOT, VBIV and PTE. A
January 4, 2019 Miami New Times article about Wendt’s case can be seen at:
https://www.miaminewtimes.com/news/miami-billionaire-phillip-frost-sued-for-additonal-stock-
fraud-10971262
Wendt v Frost et al
US District Court for the Southern District of Florida​ ​1:2018cv25485
Filed: December 31, 2018
Defendants: Richard M. Krasno, Robert S. Fishel, Juan F. Rodriguez, Michael Brauser,
Barry Honig, Steven D Rubin, Harvey Kesner, Robert A. Baron, Jane H. Hsiao, John A.
Paganelli, Richard C. Pfenniger, Jr., Alice Lin-Tsing Yu, Southern Biotech, Inc., Phillip Frost,
OPKO Health, Inc., Adam E Logal, John O'Rourke, Richard A. Lerner and Frost Gamma
Investment Trust
This case is stayed pending the outcome of the OPK class action.

24
​https://www.courtlistener.com/docket/7822644/157/securities-and-exchange-commission-v-honig/
(August 8, 2019 letter from SEC attorney Nancy Brown to SDNY Judge Edgardo Ramos)

15
 C- OPK investigations
OPK is under investigation by the DOJ for improper Medicare billing under the False
Claims Act.
https://hindenburgresearch.com/opko-health-if-these-sec-charges-were-surprising-then-you-have
nt-been-paying-attention/

D- See section V of this report for my hypothesis that Frost was illegally short-selling
OPK and TEVA on the TASE.

E- Pages 60-63 of OPK’s 10-K filed on March 2, 2020 describe various investigations
and lawsuits involving Opko and Frost including several shareholder derivative actions.

III - 5: BioZone Pharmaceuticals (BZNE) / CoCrystal Pharma (COCP) (“Company A” in ​SEC

v. Honig)​
A- ​Pepe v CoCrystal​ (DNJ 2:18-cv-14091-KM-JBC). This CoCrystal class action
lawsuit has been consolidated from numerous initial complaints. Frost is named as a defendant.
The 68-page amended class action complaint was filed June 25, 2019 and can be seen at:
http://securities.stanford.edu/filings-documents/1067/CPI200_02/2019625_r01c_18CV14091.pd
f
B- ​Tutschek v. Schinazi et al​ (WDWA 2:2019cv01775) A 51-page complaint was filed
on Nov 1, 2019. Frost is named as a defendant.

III - 6: Majesco (COOL) / PolarityTE (PTE)

A- class action lawsuit
In Re PolarityTE Inc. Securities Litigation​ (DUT 2:18-cv-00510-JNP-PMW) This PTE
class action lawsuit has been consolidated from numerous initial complaints. Frost is not named
as a defendant. The 80-page amended class action complaint was filed April 2, 2019 and can be
seen at:
http://securities.stanford.edu/filings-documents/1066/P00_01/201942_r01c_18CV00510.pdf
Though Frost was not named as a defendant in this lawsuit, Frost played a major role in
the COOL/PTE P&D securities fraud, as documented in a variety of public news stories. Chris
Carey (aka Sharesleuth) has reported that Frost sold $6 million of COOL/PTE stock in 2017:
http://sharesleuth.com/investigations/2018/07/cool-mara-riot-the-big-money-bitcoin-biotech-dais
y-chain
B- PTE has disclosed in its public SEC filings that the company has received multiple
subpoenas from the SEC. On April 8, 2020, PTE announced the conclusion of the SEC
investigation.
https://www.polarityte.com/news-media/press-releases/detail/526/polarityte-announces-conclusi
on-of-sec-investigation

C- The FDA issued a 483 inspection report on PTE on July 18, 2018.
https://www.fda.gov/media/120695/download

III - 7: Bioptix (BIOP) / Venaxis / Riot Blockchain (RIOT)

16
 A- RIOT has disclosed that the company has received a subpoena from the SEC. On
January 30, 2020, RIOT announced the termination of the SEC investigation.
https://www.riotblockchain.com/news-media/press-releases/detail/70/riot-blockchain-announces-
termination-of-sec-investigation

B- class action: ​Takata v Riot Blockchain

http://securities.stanford.edu/filings-documents/1065/RBI00_04/201959_r01c_18CV02293.pdf
(corrected consolidated amended class action complaint, 164 pp.)

III - 8: Cool Holdings (AWSM)

AWSM has disclosed that the company has received a subpoena from the SEC.

III - 9: Laidlaw & Co.

Teri Buhl has written a series of articles describing how the Frost gang used broker/dealer
Laidlaw & Company to sell shares of Frost gang companies to retail investors. Buhl’s article of
March 19, 2019 reported that Laidlaw is under investigation by the FBI.
https://www.teribuhl.com/2018/09/12/laidlaw-execs-helped-barry-honig-execute-stock-manipula
tion-scheme/
http://www.teribuhl.com/2019/03/19/honigs-broker-dealer-laidlaw-target-of-fbi-investigation/
https://www.teribuhl.com/2019/08/02/laidlaw-assisted-barry-honig-in-secret-stock-sales-pre-pd-
of-u-s-gold-usau/

Buhl’s article of May 12, 2020 describes FINRA and SEC investigations at Laidlaw.
http://www.teribuhl.com/2020/05/12/finra-investigation-confirmed-laidlaws-execs-eitner-ahern-
directed-securities-fraud/
Buhl’s article includes a link to a 2018 New York state lawsuit that contains this nugget:

The lawsuit can be seen at:

https://www.scribd.com/document/461288512/Laidlaw-Company-v-broker-Kevin-Wilson-Marc
h-2018#from_embed

17
III - 10: Ladenburg Thalmann Financial Services (LTS)
A- ​Frost v LTS
Phillip Frost resigned as chairmain of LTS shortly after ​SEC v Honig​ was filed in
September of 2018, and then sold most of his LTS holdings to LTS after Frost settled with the
SEC in early 2019. In November of 2019, LTS announced that it would be acquired by Advisor
Group.25 Frost sued LTS shortly thereafter (December 2019). Five other lawsuits have also been
filed against LTS.
It appears to me that Frost’s primary motive for filing ​Frost v LTS​ is to shield his past
frauds at LTS from discovery and liability. The complaint, which was filed on December 20,
2019, can be found by searching at the following link:
https://www2.miami-dadeclerk.com/ocs/Search.aspx
Court records available via the same link show that Frost’s complaint was dismissed with
prejudice by joint stipulation on February 21, 2020.

B- Frost alleges a possible FINRA investigation at LTS in ​Frost v LTS:​

C- I have filed an SEC whistleblower complaint for suspected securities violations at

LTS.

III - 11: Teva Pharmaceutical Industries (TEVA)

25
https://www.streetinsider.com/Corporate+News/Advisor+Group+and+Ladenburg+Thalmann+%28LTS%
29+Announce+Merger+%28Earlier%29/16118119.html

18
 A- See Section VII of this report for my hypothesis that Frost illegally sold TEVA short
on the Tel Aviv Stock Exchange (TASE).
B- TEVA Pharmaceuticals settled with the US government for Foreign Corrupt Practices
Act (FCPA) violations that largely occurred when Frost was Chairman at TEVA. The DOJ press
release about the $519 million settlement can be seen at:
https://www.justice.gov/opa/pr/teva-pharmaceutical-industries-ltd-agrees-pay-more-283-million-
resolve-foreign-corrupt
More information about the settlement and other shady dealings at TEVA when Frost was
Chairman can be seen at:
https://www.fiercepharma.com/pharma/former-teva-execs-board-members-to-pay-50m-for-role-
2016-foreign-bribery-case
C- TEVA has also settled False Claims Act (FCA) claims for fraudulent Medicaid billing
that occurred while Frost was Chairman.

III - 12: Eloxx Pharmaceuticals (ELOX)

Winfield v ELOX
Teri Buhl has written about this case, which was filed on March 14, 2019. Frost is not
named as a defendant, though Frost was and is involved in ELOX and related companies. Buhl’s
article is at:
https://www.teribuhl.com/2019/03/18/honig-eloxx-pharma-sued-for-stock-fraud-elox/
The 17-page complaint was filed on March 4, 2019 and can be seen at:
https://www.scribd.com/document/402284583/John-Winfield-vs-Honig-and-Eloxx-Pharmaceutic
als-3-5-19
+Barry Honig, +David Rector

III - 13: Other Frost gang companies named in investigations and/or showing signs of suspicious
behavior:
A- SEC Subpoena to Ben Brauser from ​SEC v Honig​. The subpoena lists 33 companies
and about 63 individuals related to the Frost gang:
https://www.scribd.com/document/438274110/Michael-Brauser-Family-SEC-Subpoena-9-30-19
B- While this section III is mostly limited to formal investigations and litigation, the
Frost gang committed frauds at many other Frost gang companies. Other Frost gang companies
are listed in Section IV.2..

III - 14: Frost gang lawsuits to silence journalists and critics

A- ​Hoing v Drose
In this case, Honig successfully sued Chris Drose (aka Bleecker Street Research) to
retract a June 20, 2016 negative story on Frost gang companies Chromadex and Pershing Gold.
+ CDXC, +PGLC. +Jonathon Lebed, +Frank Jaksh, +Phillip Frost, +John Ford, +David
Blech, +Margie Chassman. +Hugh Dunkerley, +Rob Fried.

B- ​Honig v Buhl I ​ and ​Honig v Buhl II

In these two cases, Honig unsuccessfully sued Teri Buhl to silence her reporting on
MGTI, which is “Company B” in ​SEC v Honig.​
+Charles Harder, +Robert Ladd

19
 C- ​Vuzix v Richard Pearson​ (SDNY 1:19-cv-00689-NRB)
This case was dismissed for lack of jurisdiction.

III - 15: ​Kesner v Barron’s, Bill Alpert and Teri Buhl

Timeline of case:
May 31, 2019: Original complaint filed by Kesner in SDFL.
https://www.scribd.com/document/419796626/Kesner-v-Barron-s-Bill-Alpert-and-Teri-Buhl-FL
SD-2019

September 16, 2019: Amended Complaint filed by Kesner in SDFL.

https://www.courtlistener.com/recap/gov.uscourts.flsd.550874/gov.uscourts.flsd.550874.36.0.pdf

May 1, 2020: Order Granting Motion to Transfer Venue (to SDNY)

https://www.courtlistener.com/recap/gov.uscourts.flsd.550874/gov.uscourts.flsd.550874.76.0.pdf

My September 18, 2019 commentary on this case can be seen at:

https://www.scribd.com/document/426383625/September-18-2019-Pederson-Letter-to-Feds-Re-
Harvey-Kesner
This lawsuit against journalists Terri Buhl and Bill Alpert (of Barron’s) smacks of
desperation by attorney Harvey Kesner and the Frost gang. The articles that Kesner complains
about are highly unfavorable to Frost, Kesner, and the Frost gang, but they are well-researched,
well-written and accurate.26 27 If there is some strategic motive behind Kesner’s bogus and
sure-to-fail legal action, I do not see it.

Kesner’s lawsuit is also notable for its allegation that defendants Buhl and Alpert profited
from illegal short selling after they wrote negative articles about Kesner, Frost and the Frost
gang. Paragraph 16 of Kesner’s Amended Complaint references a “short and distort” scheme.
However, Kesner presents no hint of evidence to support this allegation in his complaint.

III - 16: (Lack of) Defamation lawsuits against Pederson

The remarkable thing about this category is that no Frost gang individual or entity has
sued me for defamation, even though I have been outspoken about the frauds and crimes of the
Frost gang.
A- In April of 2019, PTE threatened to sue me for contacting PTE director Minnie
Baylor-Henry regarding the P&D securities fraud at COOL/PTE:
https://www.scribd.com/document/407800853/190426-Letter-From-PTE-s-Legal-Counsel-to-Le
e-Pederson
I responded to this threat by posting PTE’s cease-and-desist letter on Twitter and by
continuing to provide information to Ms. Baylor-Henry. As a result, PTE has not sued me, and
the PTE Board of Directors subsequently removed Denver Lough from his position as CEO, and
then removed Lough from his position on the BOD.
26
​https://www.barrons.com/articles/sec-charges-phillip-frost-1536608366
27
​https://www.barrons.com/articles/the-lawyer-at-the-center-of-sec-pump-and-dump-case-1538675403

20
 B- After Harvey Kesner filed ​Kesner v Barron’s​, I invited Kesner to sue me:

Kesner has not sued me.

C- I have frequently called Phillip Frost a fraudster and criminal on Twitter and in other
contexts. I use the hashtags #PrisonTimeforWhiteCollarCrime and #BernieMadoffofBiotech to
refer to Frost. Frost has not sued me.

D- On May 5, 2020, I began a series of tweets to document Phillip Frost’s fear of suing
me:

21
May 6: Reasons why billionaire fraudster​ #PhillipFrost​ will not sue me: 2. Fear of being lumped
together with Honig, Kesner and Brauser via compulsory joinder.​ $OPK​ $PTE
#BernieMadoffofBiotech​ #PrisonTimeForWhiteCollarCrime

May 6: Reasons why billionaire fraudster​ #PhillipFrost​ will not sue me: 3. Fear of publicizing
his securities frauds.​ $OPK​ $PTE​ #BernieMadoffofBiotech​ #PrisonTimeForWhiteCollarCrime

May 7: Reasons why billionaire fraudster​ #PhillipFrost​ will not sue me: 4. Fear of producing
documents and correspondence in discovery.​ $OPK​ $PTE​ #BernieMadoffofBiotech
#PrisonTimeForWhiteCollarCrime

22
 May 8: Reasons why billionaire fraudster​ #PhillipFrost​ will not sue me: 5. Because Frost would
lose, and then I would sue him for malicious prosecution.​ $OPK​ $PTE​ #BernieMadoffofBiotech
#PrisonTimeForWhiteCollarCrime

E- Attorneys representing Frost or Frost’s associates have used thinly veiled legal threats against
me at least five times:
Late 2013: Paul Sievers
Fall 2017: Harvey Kesner
April 2019: Maggie Dalton
June 2019: Maggie Dalton
April 2010: Robert Arnello

F- I tweeted about Version 10.2 of this Frost gang Report on June 6, 2020.

III - 17: YesDTC litigation

Teri Buhl has reported extensively on this set of cases that clearly implicates Barry Honig
in an early P&D operation that resulted in criminal convictions and civil judgments. These cases
does not involve Frost, so the documents from these cases are listed in section IX of this report
instead of in this section. However, the YesDTC situation is highly relevant to the Frost gang
situation for two main reasons. First, documents from the YesDTC civil and criminal cases
directly implicate Barry Honig in a P&D securities fraud. Second, the DOJ investigation of
YesDTC has dove-tailed with the present DOJ Frost gang investigation.
+Gregg Jaclin, +Joseph Noel, +David Zazoff, +Barry Honig, +Imran Husein

III - 18: MabVax (“Company C” in ​SEC v. Honig)​

An “​Open Letter from Lee Pederson re: MabVax Litigation” was posted online on May
12, 2020. The letter can be seen at:
https://www.scribd.com/document/461063992/200512-Open-Letter-Re-MBVX-P-D-Securities-F
raud

23
 A- ​MabVax v Honig et al​ (Superior Court of California, San Diego County, Case No.
37-2019-00018398) This case was filed on April 8, 2019 and alleges claims for unlawful market
manipulation, fraud, etc. The 42-page complaint can be seen here:
https://www.scribd.com/document/443441429/Mabvax-Therapeutics-Holdings-vs-honig
Frost is a defendant in this case along with many of the other defendants from SEC v
Honig, along with Robert Prag (IR firm DMCG), Steve Rubin (OPK), Robert Haag (IRTH
Communications) and Andrew Haag (IRTH Communications).
B- ​Mabvax v Sichenzia​. The original 39-page complaint against Harvey Kesner and his
former law firm was filed on September 10, 2018 and can be seen here.
https://www.scribd.com/document/392545187/Mabvax-v-Sichenzia
The docket can be seen here:
https://www.courtlistener.com/docket/8138204/mabvax-therapeutics-holdings-inc-v-sichenzia-ro
ss-ference-llp/?filed_after=&filed_before=&entry_gte=&entry_lte=&order_by=desc
“Company H” is Hudson Bay Capital (as per Teri Buhl article).
C- ​In re MabVax Therapeutic Securities Litigation
The 67-page consolidated class action complaint can be seen here:
http://securities.stanford.edu/filings-documents/1066/MTH00_01/20181010_r01c_18CV01160.p
df
This class action was voluntarily dismissed in late 2018.
http://securities.stanford.edu/filings-documents/1066/MTH00_01/20181113_f01n_18CV01160.p
df
The circumstances surrounding the dismissal seem fishy to me. First of all, John Lemak
was the lead plaintiff in the case, as can be seen from the consolidated complaint. However,
Lemak had a relationship with the Frost gang going back to at least 2011.
On March 16, 2011 Chromadex (CDXC) filed a Registration Statement (RS) that may
have been related to a pump and dump securities fraud. The RS is at:
https://www.sec.gov/Archives/edgar/data/1386570/000119312511068854/ds1.htm#tx160954_6
On page 17 of the RS, there is a list of selling shareholders:

24
 This is a remarkable list. The selling shareholders included Lemak along with Steve
Rubin (present officer at OPK), Richard Lerner, Robert Prag, Richard Pfenniger, two Honigs,
seven Brausers, and Peter Benz (current director at FLNT).
Lemak also had business dealings with Honig in 2015 at a company called Be Active
Holdings (JALA).
+John Lemak, +Sandor Capital Master Fund, +JALA
Lemak was also in on the PTE P&D. (See Section III.2.B.6)
+PTE, +Sandor, +JSL Kids
Second, Honig, Brauser, Stetson, FGIT and others were named defendants in this case.
Thus, there were “deep pockets” to pursue, even if MBVX itself was out of money. (Cf the
MBVX class action settlement, where none of the named defendants had enough money to
justify continuing the litigation.)

See: RE: “John Lemak and the Frost gang” dated January 20, 2020:
https://www.scribd.com/document/443606513/RE-John-Lemak-and-the-Frost-Gang

25
 D- ​Kesner v Baker Botts
Frost gang attorney Harvey Kesner has filed a complaint arising out of the MBVX P&D
and subsequent litigation. This lawsuit is described in Section III - 25.

E- MabVax bankruptcy proceedings

F- Honig v Hansen
The complaint in this 2020 case can be seen at:
https://www.scribd.com/document/461060354/200511-Honig-v-Hanson-Complaint

III - 19: DOJ criminal investigations

I know from personal experience, correspondence, and documentation that specific
agents (FBI and US Attorneys) in the Department of Justice have been investigating members of
the Frost gang since at least 2014.
Teri Buhl was the first to write about the DOJ investigation on November 8, 2016:
https://www.teribuhl.com/2017/02/09/california-doj-investigating-honig-and-the-frost-group-2/
Buhl reported on another aspect of the DOJ investigation on March 19, 2019.
http://www.teribuhl.com/2019/03/19/honigs-broker-dealer-laidlaw-target-of-fbi-investigation/
Buhl also reported that SEC attorney Nancy Brown publicly confirmed the existence of
the DOJ investigation during a May 15, 2019 hearing in the case of ​SEC v Honig.​
https://www.teribuhl.com/2019/05/22/sec-admits-team-honig-is-under-the-criminal-investigation
-i-warned-about-in-2016/

III - 20: SEC OIG investigation

In December of 2013, I filed an SEC whistleblower complaint about the P&D securities
fraud at BioZone. I followed up by providing the office of the whistleblower with voluminous
information about the fraud. In about July of 2015, Whistleblower Chief Sean McKessy called
me personally to tell me that his office would not take any action in regards to my complaint.
The SEC later began a separate investigation of the Frost gang because of new contacts between
the agency, Dan Fisher and myself, and eventually ​SEC v Honig​ was filed on September 7, 2018.
I have asked that the SEC Office of the Inspector General to investigate the
circumstances, communications, and deliberations that resulted in the McKessy phone call to me.
I have subsequently expanded my request and by asking that the SEC OIG investigate other SEC
actions and inactions related to the Frost gang.

III - 21: ​Pederson v Clayton

There are many honest and hard-working employees within the SEC. However, I believe
that in some instances individuals within the SEC have acted corruptly regarding the lack of
enforcement actions against the Frost gang. In other instances, I believe that individuals within
the SEC have acted corruptly or arbitrarily and capriciously regarding matters involving the
Frost gang. I have written an open letter to SEC Chairman Jay Clayton expressing these
concerns. My letter to Clayton can be seen at:
https://www.scribd.com/document/433709218/191106-Open-Letter-to-Jay-Clayton

26
 I expect that the SEC will not address my concerns in a meaningful way. Therefore, at an
appropriate time and after framing the issues with Freedom of Information Act (FOIA) requests,
I intend to bring a lawsuit against Chairman Clayton to discover what has been going on inside
the SEC with respect to Phillip Frost and his gang.

III - 22: Possible new SEC charges

January 16, 2020 article by Teri Buhl
http://www.teribuhl.com/2020/01/16/more-charges-coming-for-barry-honig-pd-ring-defendants-
mgti/

III - 23: Pederson whistleblower complaint against Frost.

A- Original complaint.28
B- Application for whistleblower award.29

III - 24: MGTI (“Company B” in ​SEC v. Honig)​

A- class action complaint
http://securities.stanford.edu/filings-documents/1067/MCII200_02/2019514_r01c_18CV09228.p
df
B- Stipulation and agreement for settlement
http://securities.stanford.edu/filings-documents/1067/MCII200_02/20191011_r01x_18CV09228.
pdf

C- settlement/order
http://securities.stanford.edu/filings-documents/1067/MCII200_02/20191217_r01x_18CV09228.
pdf

III - 25: ​Kesner v Baker Botts

This lawsuit was filed by Frost gang attorney Harvey Kesner in the following context:
-- Kesner was involved in two of the three P&Ds described in ​SEC v Honig,​ though Kesner was
not named as a defendant.
-- Kesner was an attorney for MabVax, one of the three P&D companies in ​SEC v Honig.​
-- Kesner is now a defendant in ​MabVax v Sichenzia​ (see Section III - 18).

28
This document is not publicly available.
29
This document is not publicly available.

27
-- Baker Botts represents MabVax in ​MabVax v Honig.​
-- There is other related Mabvax litigation described in Section III - 18.
-- Kesner’s role and activities with the Frost gang at other companies are described throughout
this Report.

Timeline of ​Kesner v Baker Botts:​

January 21-22, 2020: Original complaint filed in SDNY.
https://www.scribd.com/document/444959626/Kesner-v-BB

January 30, 2020: “Open Letter from Lee Pederson re ​Kesner v Baker Botts​ lawsuit.”
https://www.scribd.com/document/444968454/200130-Open-Letter-From-Lee-Pederson-Re-Kes
ner-v-Baker-Botts-Lawsuit
+John Lemak

June 4, 2020: Proposed amended complaint filed in SDNY.

https://www.courtlistener.com/recap/gov.uscourts.nysd.530457/gov.uscourts.nysd.530457.17.1.p
df

In ​Kesner v Baker Botts,​ Plaintiff Kesner asks for $35 million in damages based upon a
number of legal theories. One of Kesner’s theories is that I (Lee Pederson) founded a RICO
enterprise in 2014 to extort money from Phillip Frost and other members of the Frost gang.
Baker Botts then joined this supposed RICO enterprise in 2018 to extort Kesner and his law firm.
I, of course, take issue with Kesner’s theory and with the facts he alleges about me.
However, I am not named as a defendant in ​Kesner v Baker Botts​ and it is not worth my effort to
intervene.

SECTION IV - Frost gang people, companies, and entities

The lists in this section name a wide range of people, companies, and entities associated
with the Frost gang and/or Frost gang members. Some of the people, companies and entities
have clearly been involved in frauds and/or crimes. However, the mere mention of a person,
company, or entity herein does not intend to represent the author’s opinion or belief that the
person, company, or entity is implicated in any fraud and/or crime or is controlled by the Frost
gang. The mention of a person, company or entity as a “Frost gang associate” or“Frost gang
company” or “Frost gang entity” means only that the person,company, or entity is connected in
some way to the Frost gang, a Frost gang member, or the actions of the Frost gang.

IV - 1 - Frost gang members and associates

A- Phillip Frost
Phillip Frost is the oldest, richest, and most influential member of the Frost gang. Frost
owns the IVAX building in Miami, which serves as headquarters for the Frost gang. Frost’s

28
reputation used to be one of the Frost gang’s key assets, until it became widely known that Frost
is a fraudster.
Many, if not most, of Frost’s frauds have not been completely exposed yet.30

B- Harvey Kesner
A- Kesner has been the main attorney for many of the Frost gang’s P&D securities
frauds, including the three P&D frauds described in ​SEC v Honig​. Kesner has not yet been
charged by the SEC or DOJ. Kesner left the New York law firm where he represented the Frost
gang in many P&Ds. Kesner apparently now practices in Florida. Kesner recently published a
blog at the link below. It’s good for a laugh. After all, very few people know more about fraud
than Harvey Kesner.
http://www.bestfinance-blog.com/income-career/attorney-harvey-kesner-discusses-how-foreign-i
nvestors-can-avoid-being-victims-of-financial-fraud/​ (blog by Harvey Kesner)
B-
+Equity Stock Transfer, +Paradox Capital Partners, +CMBS Document Solutions,
+Mohit Bhansali

C-. Barry Honig

In ​SEC v Honig​, the SEC described Honig as the “primary strategist” of the Frost gang’s
P&D operations. In addition to doing stock frauds in association with Phillip Frost, Honig also
has associated with other groups involved in suspicious activities. One such group included
Joseph Noel, Imran Husain, Gregg Jaclin and David Zazoff.31 Another Honig group includes
Andy and Catherine Defrancesco, Michael Serruya and Brady Cobb.32 Yet another involves
investment banking and brokerage firm Laidlaw & Co.33
+BZNE, +MGTI, +MBVX, +PTE, +Americas Silver, +PGLC, +TWER, +RIOT,
+OXISD (OXIS International), +Levon Resources, +MDVX, +CDXC, +WPCS, +ILNS,
+SciVac, +Sevion, +PULM, +Bioptix, +COOL, +RLMD, +VPCO, +USEL, +INVT, +DRAM,
+USAU, +MARA, +CDE (Coeur Mining), +SPEX, +PRZM, +NBEV, +BFGC, +ELOX

D- Michael Brauser

30
​https://www.scribd.com/document/429644254/191010-Frost-as-an-OPK-Short-Seller-Hypothesis
(Pederson letter about possible short-selling of OPK by Frost)
31

https://www.teribuhl.com/2016/05/26/microcap-attorney-jaclins-co-conspirator-turned-doj-witness-in-shell-
factory-scheme/​ (Teri Buhl article)

32

http://www.teribuhl.com/2019/09/04/andy-defrancesco-quits-sol-global-top-job-after-bad-press-weighs-on-
stock-price-sol-cn-solcf/​ (Teri Buhl article)
33

http://www.teribuhl.com/2019/09/25/barry-honig-secretly-funded-underwriting-in-his-laidlaw-co-deals-trpx/
(Teri Buhl article)

29
 Brauser is a defendant in ​SEC v Honig.​ After the SEC charged Brauser in ​SEC v. Honig
he resigned as Executive Chairman of Red Violet (RDVT), but Brauser still apparently controls
RDVT in a consulting or advisory capacity.
https://michaelhbrauser.com/​ (Brauser’s website)

E- John Stetson
Stetson is a defendant in ​SEC v Honig​. Stetson is the former CFO at COOL/PTE.
Stetson reportedly was a fraternity brother of PTE’s general counsel Cameron Hoyler and PTE’s
COO Ned Swanson at Penn.

F- John O’Rourke
O’Rourke is a defendant in ​SEC v Honig​. O’Rourke is the former CEO at Riot
Blockchain (RIOT).

G- Mark Groussman
Groussman was a defendant in ​SEC v Honig​ until he settled with the SEC.

H- Steve Rubin
Rubin is an officer at OPK, and a director at a number of Frost gang companies.

I- Jane Hsaio
Hsaio is an officer at OPK, and a director at a number of Frost gang companies.

J- Richard Pfenniger
Pfenniger is a director at OPK, TRXC and the Frost Museum of Science.

+CDXC.

K- Richard Lampen
Lampen is the chairman at LTS.
+Vector Group, +CDXC

L- James J.Martin
Martin is a Frost gang factotum. Martin’s biography says,”​Mr. Martin has extensive
public company experience as a CFO. From 2014 to 2016 Mr. Martin was the Chief Financial
Officer of VBI Vaccines, Inc. (formerly SciVac Therapeutics, Inc.), a dual listed Canadian TSX
and NASDAQ commercial vaccine company, where he navigated the company in the successful
completion of a merger in July 2015 and an acquisition in May 2016. Since 2010, Mr. Martin has
also served as the Chief Financial Officer of Non-Invasive Monitoring Systems, Inc., an OTC
listed non-invasive medical devices company. From 2014 to 2015, Mr. Martin served as Chief
Financial Officer of the NASDAQ listed Vapor Corp, Inc. after serving as Chief Financial
Officer of NYSE listed TransEnterix, Inc. from 2010 to 2013. Earlier in his career, Mr. Martin
held finance positions at Aero Pharmaceuticals, AAR Aircraft Services and Systems Products
International. Mr. Martin was also an Operations Specialist with the U.S. Navy from 1985 to

30
1990. Mr. Martin holds an undergraduate degree in business administration and an MBA from
Barry University in Miami and is a Certified Public Accountant.”34

M- Adam Logal
Logal is the CFO at OPK.
+XBIO (BOD)

N- Curtis Dale

O- Brian Keller

P- Elliot Maza

Q- Roger Kornberg
+CoCrystal, +COCP, +CDXC, +XBIO

R- Adrian James
+MSLP. +RIOT

S- Robert Prag
Owner of Del Mar Consulting Group, or “DMCG” (IR Firm)
+MBVX, +CDXC

T- Tomer Kariv
+Pontifax (hedge fund), +TRPX, +ELOX, +VBIV, +ARNO

U- Ran Nussbaum
+Pontifax, +TRPX (chairman), +SVON

V- Howard Lorber
+VGR, +LTS

W- Richard Lampen
+LTS, +CDXC

X- Peter Benz
Director at RDVT. Director at FLNT.
+CDXC, +USell (director)

Y- Richard Krasno
+LTS, +Frost School of Music (BOD), +OPK (BOD)

34

https://www.cocrystalpharma.com/news/press-releases/detail/36/james-j-martin-appointed-as-chief-financ
ial-officer-of

31
Z- Minnie Baylor-Henry
+PTE (BOD)

AA- Mohat Bhansali

+MSRT

BB- Michael Beeghly

+RIOT

CC- Chris Ensey

+RIOT

DD- Steve Gorlin

+PTE (BOD), +MDVX (Medovax), +Mimedx

EE- John Lemak

Lemak is an investment advisor in Dallas, TX. On January 20, 2020, I sent a 6-page
letter to the SEC and DOJ regarding Lemak’s roles with the Frost gang, including various P&Ds
and the MBVX class action lawsuit.
https://www.scribd.com/document/443606513/RE-John-Lemak-and-the-Frost-Gang
+CDXC, +MBVX, +PTE, +MGTI, +SPEX, +JALA, +Sandor Capital, +JLS Kids,
+Kesner v Baker Botts, +TWER

FF- John Liviakis

Liviakis owns Liviakis Financial Communications in Fairfax, CA. Liviakis did PR for
CDXC. Liviakis was named as a selling shareholder at CDXC and Pershing Gold.
+John Lemak, +Barry Honig

GG- Swayman
Director at RDVT, Vapor Corp.

HH- Derek Dubner

CEO, Director at RDVT, Naviant (Brauser)

IV - 2 - Companies associated with the Frost gang and/or Frost gang members
A- BioZone (BZNE)/CoCrystal Pharma, Inc. (COCP)
Before BioZone came into contact with the Frost gang, BioZone had a $15 million
manufacturing business, over a hundred employees, a proprietary drug delivery technology
platform, a patent portfolio of over 100 applications and patents in over 80 countries, and a rich
pipeline of potential pharmaceutical, OTC and nutraceutical products. The Frost gang destroyed
BZNE’s business and R&D program in order to conduct their P&D securities fraud.
BZNE/COCP is the first Frost gang P&D described in ​SEC v Honig​. However, according
to my calculations (which I have shared with the Feds), the allegations in ​SEC v Honig​ account
for only a fraction of the illegal profits the Frost gang made from the BZNE/COCP P&D. Frost,

32
Rubin and Hsaio are still on the COCP BOD. COCP’s CFO, James Martin, has spent much of
his career at a succession of Frost gang companies.
The market cap of COCP is about $23 million, down from a peak of over a billion
dollars. The last few days have seen a huge spike in trading volume. On October 31, 2019,
COCP filed a prospectus to sell more stock.

Registration statement filed February 13, 2013:

https://www.sec.gov/Archives/edgar/data/1412486/000152153613000139/q1100969_s1a-biozon
e.htm
This SEC filing (registration statement) lists patent applications as assets on page 27. On
page 32, the RS describes a NY state lawsuit the company filed against Dan Fisher. On pp 40-41
the RS describes over 8 million shares to be sold by the Aero liquidating trust, without disclosing
Frost’s ownership of Aero.

IV - 2 - B - PolarityTE (PTE)
1- ​PTE "doctors" used SkinTE, a product with no proof of safety or efficacy, on badly
burned children as part of their stock promotion. The SkinTE treatments failed. Fortunately, the
children survived.
2- PTE has disclosed that it has received multiple subpoenas from the SEC.
3- PTE used to be Majesco (COOL).
4- COOL/PTE founder Denver Lough has been removed as CEO by the BOD, and
Lough has resigned from the board. PTE has filed a registration statement that would allow
Lough to sell 7 million shares of his PTE stock.
5- List of selling shareholders from PTE RS dated 4-13-17

33
 6- List of selling shareholders from PTE RS dated 8-3-16.
https://www.sec.gov/Archives/edgar/data/1076682/000141588916006664/cools3a_am2aug2016.
htm#sellingstockholders_035949
+John Lemak, +Sandor Capital, +JSL Kids

34
7. Mini P&D at PTE
There was a mini P&D at PTE around September 23, 2019. I described this event in a
letter to PTE Director Minnie Baylor-Henry.
https://www.scribd.com/document/427438627/September-23-2019-mini-pump-and-dump-at-PT
E

8. PTE’s “short and distort” narrative

PTE issued a press release on October 9, 2018 about “the publication of speculative and
misleading information about PolarityTE.” PTE said that they were reporting such publications
to the SEC.
https://www.polarityte.com/news-media/press-releases/detail/456/polarityte-announces-reporting
-of-apparent-intentional

PTE issued another PR on October 18, 2018, in which they alluded to, “suspected illegal
trading activity.”
https://www.polarityte.com/news-media/press-releases/detail/458/polarityte-issues-statement-on-
misleading-internet-post

35
 What happened next is described in PTE’s 10-KT dated March 18, 2919:
“In October 2018, we received a document request and inquiries from the
SEC relating to subjects addressed in the short seller reports and cooperated fully
by providing the SEC with all information relevant to their requests. On March 1,
2019, we received a subpoena from the SEC requesting additional documents
related to, among other things, (i) communications and agreements between us
and, among others, John Stetson, Barry Honig and Michael Brauser, (ii) the
transaction pursuant to which Majesco Entertainment Company acquired
PolarityTE NV and our current regenerative medicine business, (iii) the
performance of and communications with regulators regarding SkinTE, our lead
product, and (iv) any promotion of the Company or its securities. On March 4,
2019, we obtained from the SEC a copy of the formal order of investigation of the
Company and its affiliates with respect to possible violations of the federal
securities laws, including, among other things, the anti-fraud provisions of the
Securities Act and the Exchange Act with respect to the Company’s public
disclosures, the beneficial ownership reporting provisions of the Exchange Act
and the anti-price manipulation provisions of the Exchange Act. We intend to
fully cooperate with the SEC regarding their March 2019 subpoena and this
ongoing investigation.”

9. Erdtmann resignation from BOD

10. Brauser Benz push fro BOD seats in May 2020

C- Opko Health, Inc. (OPK)

1- Frost is the CEO, chairman, and largest shareholder at OPK. A glance at Opko’s
reecnt public SEC filings reveals a company in crisis:
-- Negative operating capital.
-- Negative net asset value when excluding intangible assets.
-- Opk losing $50 million per quarter.
-- No real prospect of increasing revenues significantly.
-- Multiple lawsuits.
-- Denial of insurance coverage for class action and derivative suits.
-- False Claims Act (Medicare fraud) allegations by the SDNY.
-- Allegations of illegal physician subsidies by the SDNY.
2- OPK’s share price is down from over 18 bucks a share to about a buck-fifty. About
$8 billion of market cap has disappeared.
+XBIO, +Phillip Frost, +Adam Logal

D- Red Violet (RDVT)

RDVT is bucking the trend of Frost gang companies by maintaining its share price, even
though RDVT’s financial disclosures in its SEC filings would not seem to support the current

36
valuation. I wrote to the SEC and DOJ on October 11, 2019 with my observations and
speculations about RDVT. This October 11 letter is not public at the moment.

E- Ladenburg Thalmann (LTS)

Frost is the former chairman at LTS.
+Investacorp (Headquarters in Frost’s IVAX building)

F- MabVax (MBVX)
MBVXis one of the companies (“Company C”) described in ​SEC v Honig​ as the subject
of a Frost gang P&D. MBVX is in bankruptcy proceedings. MBVX is suing Kesner and Honig
separately.
+Telik35

G- Towerstream (TWER)
Honig led a P&D at TWER. TWER has a current market cap of about $79 thousand,
down from a peak of about $10 million.36
+John Lemak

H- Transenterix (TRXC)
TRXC, formerly SafeStitch Medical, has a current market cap of about $52 million, down
from over $1 billion. Jane Hsaio and Richard Pfenniger are directors. Frost was an investor in
Safestitch, and helped the company raise money in a merger..

I- Cool Holdings (AWSM)

AWSM has disclosed that it has received a subpoena from the SEC. AWSM shares are
trading for about 26 cents, down from over 10 dollars in September of 2018.

J- Therapix (TRPX)
A- Teri Buhl published an article on TRPX on September 25, 2019:
http://www.teribuhl.com/2019/09/25/barry-honig-secretly-funded-underwriting-in-his-laidlaw-co
-deals-trpx/
+Laidlaw, +Barry Honig
B- I prepared an 8-page report on TRPX and sent it to the SEC and DOJ on January 11,
37
2020.

K- RIOT
+Adrian James

35

https://www.prnewswire.com/news-releases/telik-and-mabvax-therapeutics-announce-definitive-merger-a
greement-258956581.html
36

https://insiderfinancial.com/towerstream-corporation-nasdaqtwer-is-playing-out-exactly-how-honig-expect
ed/117783/

37
This document is not publicly available.

37
L- ATNM

M- Sevion (SVON)/Eloxx Pharmaceuticals (ELOX)

A- April 16, 2018 proxy statement re merger between Sevion and Eloxx:
https://www.sec.gov/Archives/edgar/data/1035354/000119312518118761/d500492ddef14a.htm
+Phillip Frost, +Tomer Kariv, +Steve Rubin

N- SPEX
+John Lemak

O- RLMD

P- MSLP
+Adrian James

Q- FLNT

R- NIMU

S- NVCN

T- PHIO

U- Pershing Gold (PGLC)/Americas Silver (USAS)

Valor Gold 2012 (Rector, Karr, Honig):
http://promotionstocksecrets.com/valor-gold-corp-vgld-research-report/
+Chris Drose story

V- VBIV

W- Xenetic Biosciences (XBIO)

+Kornberg, Sichenzia, Logal (BOD),
+Sichenzia (reverse merger Feb 12, 2014)

Y- Chromadex (CDXC)
CDXC was the subject of a 2016 short seller report by Chris Drose (aka Bleecker Street
Research).38 Barry Honig successfully sued Drose to retract the article.
+Roger Kornberg (BOD), +Phillip Frost, +Chris Drose (litigation), +John Lemak, +Steve
Rubin (OPK), +Richard Lerner, +Robert Prag, +Richard Pfenniger, +Barry Honig, +Michael
Brauser, +Peter Benz (current director at FLNT)

38

https://web.archive.org/web/20200119013137/http://seekingalpha.com/news/3189718-bearish-sa-article-q
uestions-chromadexs-value-cites-connection-stock-promoter-shares-slump-42

38
November 2015 investment by Frost, Honig Brauser:
https://www.globenewswire.com/news-release/2015/11/05/783936/0/en/ChromaDex-Announces
-2-000-000-Registered-Direct-Offering.html

Z- DCAR

AA- VPCO/HCMC

BB- HCYT

CC- MARA

DD- MGTI
1- MGTI is “Company B” is ​SEC v Honig.
2- MGTI filed a prospectus on January 16, 2013. It can be seen here:
https://www.sec.gov/Archives/edgar/data/1001601/000114420413002632/v332261_424b1.htm
The selling shareholders in the prospectus can be seen here:

+John Ford, +John Lemak, +Sandor, +Hudson Bay Master Fund (Sander Gerber),
+Iroquois Master Fund (Josh Silverman, Richard Abbe), +Bank Gutenburg, +White Trout Lake
LLC (Alexander Berger), +Alpha Capital Anstalt (Konrad Ackerman)

EE- Drone Aviation (DRNE)

FF- Vector Group (VGR)

+Phillip Frost, +Howard Lorber, +Richard Lampen

GG- PGLC/USAS

HH- IDI

39
 IDI was the subject of a short seller report by the “Pumpstopper” in July of 2015.39
IDI (Brauser) responded with a published interview the next day.40
IDI merged with private company Fluent to become Cogint (COGT), assisted by a $47
million investment (bailout) led by Frost.
COGT split into Fluent (FLNT)41 and Red Violet (RDVT).
On November 19, 2019, I sent a letter to SEC and DOJ agents outlining the “IDI Group”
and suggesting that they interview FLNT CEO Ryan Schulke.
https://www.scribd.com/document/435351479/191116-Letter-Re-Ryan-Schulke
+Derk Dubner (RDVT), +David Zazoff (MDM Worldwide)

May 9, 2016 stock (Fluent) purchase agreement between Frost, Honig, and other Honig
family/enitites.
http://investors.fluentco.com/node/9016/html

II- Chanticleer (HOTR/BURG)

JJ- Immune Pharmaceuticals (IMNPQ)

+Elliot Maza, +David Blech, +Margie Chassman

KK- Dataram (DRAM)/US Gold (USAU)

A- 2016 Stock purchase agreement.
https://www.scribd.com/document/420651077/US-Gold-Stock-Purchase-Agreement-Barry-Honi
g-1000-Series-A-HR-12-30-16
+Barry Honig, +Laidlaw, +Sichenzia
B- July 31, 2019 Sharesleuth article on US Gold P&D with $5 M profits:
http://sharesleuth.com/investigations/2019/07/former-trump-cabinet-member-has-90000-consulti
ng-deal-with-questionable-mining-company
+Barry Honig, +John Stetson, +SmallCap IR, +Edward Karr (14 Honig companies
including MBVX), +David Rector (“more than a dozen companies connected to Honig”),
+Alpha Capital Anstalt

LL- Be Active Holdings (JALA)

September 21, 2015 “Consent, Waiver and Modification Agreement”
https://www.sec.gov/Archives/edgar/data/1514514/000141588915003167/ex10-13.htm
+John Lemak, +Barry Honig, +John Stetson, +Alpha Capital Anstalt, +Sandor Capital,
+HSCI, +Michael Brauser, +GRQ, +Melachdavid

MM- Intellect Neurosciences (ILNS)

+Elliot Maza

39
​https://www.valuewalk.com/2018/09/idi-pump-stopper/
40
​https://www.valuewalk.com/2015/07/idi-ceo-responds-to-pump-stopper-short-thesis/
41

https://www.globenewswire.com/news-release/2018/04/11/1468504/0/en/Cogint-Inc-Announces-Corporat
e-Name-Change-to-Fluent-Inc.html

40
NN- Spiral Energy Tech
Notes: found by googling -Elliot Maza Harvey Kesner-, Truli Media Group, Ezra Green
CEO, Exactus (EXDI), SGYT, selling shareholders, Auracana, Glen Kesner

OO- Levon Resources / SciVac

August 2019 merged with Discovry Metals - TSX (Toronto Stock Exchange):
https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3ALVN-2791857&symbol=LVN&regi
on=C
Levon/SciVac/Frost 2015:
https://www.accesswire.com/427056/Opkos-Frost-Inks-Levon-Deal-with-Israels-SciVac-a-Hint-
for-the-Next-Merger
Frost/Honig/Brauser/Levon 2014:
https://www.newswire.ca/news-releases/levon-resources-ltd-announces-a-usd-54-million-private
-placement-515881731.html

IV - 3 - List of Frost gang investment entities

A- Marlin Capital
+Barry Honig, +Michael Brauser

B- Southern Biotech
+Phillip Frost, +Barry Hong, +Michael Brauser

C- HS Contrarian Investments (HSCI)

+John Stetson, +Barry Honig

D- Melachdavid

E- GRQ
+Barry Honig

IV - 4 - List of attorneys and accountants

A- Paritz

B- Sichenzia
+XBIO, +TRPX

C- Harvey Kesner
+TRPX

41
IV - 5 - List of stock promoters
A- Drew Ciccarelli

B- David Zazoff (MDM)

C- TSX Ventures

D- RedChip Investor Relations (David Gentry - book)

E- Mission IR

F- Third Coast Media

G- SmallCap IR

H- Stockbeast.

I- IRTH
IRTH is mentioned in the ​Mabvax v Honig​ complaint.
+Robert Prag

IV - 6 - List of transfer agents

A- Bonsal

B- Kesner

IV - 7 - List of investment banks

A- LTS

B- Cannaccord Genuity
+PolarityTE, +RIOT

C- Jeffries

D- HC Wainwright

E- Cowan - PTE, David Seaburg

F- Cantor Fitzgerald

IV - 8 - List of hedge funds

A- Pontifax (Tomer Kariv)

B- Alpha Capital Anstalt (Lichtenstein, defendant in ​SEC v Honig​)

42
C- Oracle Partners (Larry Feinberg)
See the Biospace article referenced at section VII.3.

SECTION V - Frost gang market manipulation methods

1- General Frost gang pump and dump (P&D) method

2- Illegal swap trades

Both the complaint and amended complaint in ​SEC v Honig​ describe in detail how the
Frost gang used illegal swap trades during the BZNE P&D securities fraud.

3- Undisclosed paid pumping

A- paid writers
i. John Ford has consented to judgment in ​SEC v Honig​.
ii. Chris Carey has written a long and detailed article describing a network of writers
who illegally promote Frost gang companies.42
B- Paid pumpers on internet message boards.
C- “Trading gurus” on Twitter.
i. ​"Tech Investor @DrJohnRaymond"
Here are a series of tweets from 2015. ​By way of background, it appears that the Frost
gang created a twitter account ("Tech Investor @DrJohnRaymond") in 2011. The account
initially got some followers and followed some people, and also made some early innocuous
posts on investing before going dormant. In 2015, the account was used to pump Frost gang
companies (including MBVX) for a few months before going dormant again. This Twitter
account was still available to view as of January 15, 2020.
ii. Modern_cRock (Bao Nguyen)

42

http://sharesleuth.com/investigations/2018/03/pretenders-and-ghosts-stealth-promotion-network-exploits-f
inancial-sites-to-tout-stocks​ (Chris Carey article)

43
44
45
46
4- Broker/dealer activities
Teri Buhl has written a series of articles describing how the Frost gang uses Laidlaw &
Company to sell shares of Frost gang companies to retail investors.
https://www.teribuhl.com/2018/09/12/laidlaw-execs-helped-barry-honig-execute-stock-manipula
tion-scheme/​ (Teri Buhl article)

5- Illegal short selling

Teri Buhl has reported on the association between Barry Honig and “The Streetsweeper,”
a publication that has published short seller reports on OPK and MGTI.
https://www.teribuhl.com/2019/10/08/barry-honig-secret-profit-taking-of-short-selling-publicatio
n-thestreetsweeper-org-opk-mgti/
The take-home lesson from this story is that the Frost gang makes money on the pump
and dump as the share price of a company goes up, and they make money on the short side as the

47
price goes down. This is a key element in my hypothesis that Frost has profited from shorting
OPK and TEVA on the TASE (section III of this report).

6- Insider buying

7- Press releases
A- In 2014, the ebola virus was big news. The SEC suspended trading in four
companies that were touting their stock based on the treatment or prevention of ebola.43 COCP
jumped on the bandwagon with its own press release featuring Nobel Prize winner and COCP
director Roger Kornberg.44 In reality, COCP never had an ebola research program. In their 2014
10-K on page 4, a provisional patent application was the only mention of ebola. In their 2015
10-K on page 5, there were two mentions of a “pending provisional.” There was no mention of
ebola in their 2016 10-K. David Zazoff of MDM Worldwide was listed as the contact person on
the press release.

8- Use of investment banks

9- Possible use of hedge funds

10- Possible use of market makers

I first observed the phenomena of bracketed trade patterns at BZNE/COCP when the
Frost gang was attempting to keep the share price from collapsing. I sent numerous examples to
the SEC Office of the Whistleblower. Recently, I have noticed similar bracketed trade patterns
with OPK. Here is the OPK trading chart for OPK on November 11, 2019. Note that 1.7 M
shares were traded that day, and there were no news events (such as an announced buyout) that
would control the share price.

43
​https://www.sec.gov/news/press-release/2014-262
44

https://www.cocrystalpharma.com/news/press-releases/detail/7/cocrystal-pharma-develops-novel-ebola-s
creening-technology

48
Here is a chart for the next day, November 12, 2019:

49
And here is a chart for the next day, November 13, 2019:

50
 SECTION VI - Federal Crimes of Frost gang Members

VI - 1 - Statute of Limitations issues

The statute of limitations (“SOL”) for the federal crimes listed in this Section VI is five
years. The SOL for the YesDTC P&D has expired without charges being brought against Barry
Honig or David Zazoff. Absent unknown tolling agreements and/or sealed complaints, SOLs for
BioZone and some other P&D securities frauds have already expired. Only a few months remain
before the SOL expires in the MabVax P&D. However, many of the recent crimes committed by
Phillip Frost and other Frost gang members still have plenty of time remaining for the DOJ to
bring charges before the SOL expires.

It is worth noting that when the SEC first interviewed Dan Fisher in October of 2015, the
SEC was investigating an entity called LH Financial. The SEC apparently thought that there
might be a connection between the BioZone P&D and LH Financial. As it turns out, the head of
LH Financial had been a person named Solomon Obstfeld. Obstfeld died under mysterious
circumstances in 2010.45 There is no federal SOL for murder.

45

https://www.nydailynews.com/new-york/shady-thuggish-mogul-solomon-obstfeld-ran-powerful-pals-no-bu
ying-suicide-story-article-1.180707

51
VI - 2 - RICO (​Racketeer Influenced and Corrupt Organizations)

A - Federal RICO Criminal Statute

1 - ​18 U.S. Code § 1961. Definitions
(1) “racketeering activity” [“predicate offense”] means ... (B) any act which is indictable under
any of the following provisions of title 18, United States Code: Section 201 (relating to bribery),
… section 1343 (relating to wire fraud), ... section 1510 (relating to obstruction of criminal
investigations), … section 1512 (relating to tampering with a witness, victim, or an informant),
section 1513 (relating to retaliating against a witness, victim, or an informant), … (D) any
offense involving … fraud in the sale of securities …

2 - 18 U.S. Code § 1962. Prohibited activities

(a)​It shall be unlawful for any ​person​ who has received any income derived, directly or
indirectly, from a pattern of ​racketeering activity​ or through collection of an​ unlawful debt ​in
which such​ person ​has participated as a principal within the meaning of section 2, title 18,
United​ States ​Code, to use or invest, directly or indirectly, any part of such income, or the
proceeds of such income, in acquisition of any interest in, or the establishment or operation of,
any​ enterprise ​which is engaged in, or the activities of which affect, interstate or foreign
commerce. ...
(b)​It shall be unlawful for any ​person​ through a pattern of ​racketeering activity​ or through
collection of an​ unlawful debt ​to acquire or maintain, directly or indirectly, any interest in or
control of any​ enterprise ​which is engaged in, or the activities of which affect, interstate or
foreign commerce.
(c)​It shall be unlawful for any ​person​ employed by or associated with any ​enterprise​ engaged
in, or the activities of which affect, interstate or foreign commerce, to conduct or participate,
directly or indirectly, in the conduct of such ​enterprise​’s affairs through a pattern of
racketeering activity​ or collection of​ unlawful debt.
(d)​It shall be unlawful for any ​person​ to conspire to violate any of the provisions of subsection
(a), (b), or (c) of this section.

3 - 18 U.S. Code § 1963. Criminal penalties

(a)​Whoever violates any provision of ​section 1962 of this chapter​ shall be fined under this title
or imprisoned not more than 20 years ... and shall forfeit to the United​ States​ ...

B - Racketeering Activities / Predicate Offenses by Frost gang members include:

1 - Securities fraud at BioZone
2 - Securities fraud at MabVax
3 - Securities fraud at PolarityTE
4 - Bribery at BioZone
5 - Obstruction of Justice at BioZone
6 - Wire fraud
7 - others

52
VI - 3 - YesDTC Securities Fraud

Several participants in this Barry Honig-led P&D have pleaded guilty to criminal
charges.
https://www.teribuhl.com/2020/01/16/more-charges-coming-for-barry-honig-pd-ring-defendants-
mgti/

VI - 4 - BioZone Securities Fraud

SEC v Honig​ provided a detailed description of the P&D securities fraud at BioZone.
The SEC’s case was supported by millions of documents, plus testimony of some of the people
involved. In addition to being against federal civil laws, securities fraud is also a federal crime.
The main difference is the burden of proof.

VI - 5 - MabVax Securities Fraud

SEC v Honig​ provided a detailed description of the P&D securities fraud at MabVax.
The SEC’s case was supported by millions of documents, plus testimony of some of the people
involved. In addition to being against federal civil laws, securities fraud is also a federal crime.
The main difference is the burden of proof.

VI - 6 - PolarityTE Securities Fraud

The PolarityTE P&D is the easiest criminal fraud to prove against Frost gang members
for many reasons:
1. By the time the COOL/PTE fraud started in 2017, there was already considerable public
awareness of the P&D methods of the Frost gang. As a result, many of the Frost gang’s
operations were recognized, documented, reported and publicized in real time.
2. The fake promotional story about SkinTE has been well documented since it was started
and is easily proven to be false.46 PTE’s recent announcement that they are essentially
stopping commercial sales of SkinTE is a tacit admission that the story has been bogus
since it was started back around 2017.47
3. The Frost gang P&D methods at COOL/PTE exactly match the Frost gang P&D methods
described in ​SEC v Honig​ for three other Frost gang frauds.
4. The PTE BOD conducted an internal investigation of the P&D, and subsequently ousted
former CEO and Chairman Denver Lough. The internal record of that investigation
undoubtedly left a record that will be helpful to prosecutors.
5. The DOJ has plenty of time to prepare its case well in advance of the statute of
limitations for criminal securities fraud - though there is certainly no good reason for
delay.
6. The PTE P&D involves most of the main Frost gang players from other Frost gang
P&Ds: Phillip Frost, Barry Honig, Harvey Kesner, Michael Brauser, John Stetson, John
O’Rourke, Mark Groussman and John Lemak.

46
​https://seekingalpha.com/instablog/49608862-research-noir/5210078-polaritytes-many-deceptions
47
​https://www.scribd.com/document/459521279/200502-Open-Letter-to-LEAs

53
 7. Stetson was CFO at PTE during the P&D. Stetson’s college buddies Ned Swanson and
Cameron Hoyler are still officers at PTE.
8. PTE board member Minnie Baylor-Henry and PTE officer Jennifer Burdman have each
known about the frauds at PTE for almost the entire periods of their relationships with
PTE.
9. There is a huge volume of evidence involving pumping the PTE share price by the Frost
gang, including an article in ​Forbes​ magazine.
10. Acquisition and sale of COOL/PTE shares by Frost, Honig and other Frost gang insiders
has been well-documented and publicized.
11. As shown below, Harvey Kesner blatantly lied to the SEC in the process of registering
shares of COOL/PTE leading up to the P&D.
12. Frost, Honig, and other Frost gang members and associates sold tens of millions of
dollars of shares into the PTE P&D.48

SEC approval to print and/or sell new shares of stock is a key aspect of all Frost gang
pump and dumps. In order to obtain such approval, the company must file a Registration
Statement (RS) with the SEC, and then the SEC must approve the RS for the shares to be sold in
the public markets. The gang prints and sells new shares for three primary purposes:
1. To allow insiders to cash out cheap/free existing shares they obtained during
early stages of preparing for the P&D. This is usually done using a Form S-3 RS
or a Form S-1 RS..
2. To sell new shares to the public to fund company operations and provide cash
assets for Frost gang insiders to loot by various means. This is usually done using
a Form-S-3 RS or a Form S-1 RS..
3. To print new shares for company insiders (officers, directors, employees,
consultants) to incentivize them to go along with the frauds. This is usually done
using a form S-8 RS.

Majesco/PolarityTE has filed 13 different RS’s since May 13, 2014, as seen in the table
below.

Filing date Type SEC file no. Notes

5-13-14 S-3 333-195917 $15 M shelf registration

4-17-15 S-8 333-203501 2.2 M new and existing Equity Incentive Plan shares

6-17-15 S-3 333-205037 18.9 M resale and conversion shares

See details in next table

10-22-15 S-3 333-207564 $50 M shelf registration

48
​http://sharesleuth.com/investigations/2018/07/cool-mara-riot-the-big-money-bitcoin-biotech-daisy-chain​,
and
http://sharesleuth.com/investigations/2018/09/cool-mara-riot-part-two-securities-fraud-case-against-south-
florida-group-reverberates-through-additional-companies

54
4-29-16 S-3 333-211031 21 M resale and conversion shares
See details in next table

6-10-16 S-8 333-211959 4 M shares for equity incentive plan

1-30-17 S-1 333-215816 759,333 resale shares

See details in next table

7-7-17 S-3 333-219202 $100 M shelf registration

5-29-18 S-8 333-252264 7.3 M shares for equity incentive plan

10-5-18 S-8 333-227721 3.5 M shares for employee stock purchase plan and
equity incentive plan

2-8-19 S-3 333-229584 $200 M shelf registration

Effective as of 2-22-19

10-21-19 S-3 333-234280 Resale of 7M shares owned by Denver Lough

3-16-20 S-8 333-237189 3 M new shares for stock option incentive plan

COOL/PTE Registration Statements of particular interest are detailed in this next table.

SEC file number 333-205037 333-211031 333-215816

Type of RS S-3 S-3 S-1

Preparers, Attorneys Jesse Sutton, CEO Barry Honig, CEO Denver Lough, CEO
and Signatories Mohit Bhansali Harvey Kesner Harvey Kesner
John Stetson, CFO John Stetson, CFO
Michael Brauser Edward Swanson
Edward Karr Michael Brauser
Andrew Kaplan Michael Beeghley
Mohit Bhansali Mohit Bhansali
David Rector Barry Honig
Michael Beeghley

Frost gang Phillip Frost Phillip Frost David Swanson (?)

members/associates Mark Groussman Mark Groussman Jeffrey Swanson (?)
involved as selling John Lemak John Lemak Sandra Silverman
shareholders Barry Honig Barry Honig Matthew Swanson (?)
Michael Brauser Michael Brauser Michael Serruya
Harvey Kesner Harvey Kesner Richard Swanson

55
 John Stetson John Stetson Robert Swanson (?)
John O’Rourke Roger Conan
Scott Swanson (?)
Adam Arviv
Catherine
DeFrancesco

Filing date 6-17-15 4-29-16 1-30-17

Number of shares to 18.9 M resale and 21 M resale and 759,333 resale shares
be registered conversion shares conversion shares

Further SEC filings, 5-11-16 6-29-16 2-22-17

correspondence and Registration S-3/A SEC-generated letter
actions Statement Withdrawn Amended RS
(see snip below)

6-29-16 2-22-17
Kesner letter to SEC Kesner letter to SEC
(see snip below)

7-14-16 2-24-17
SEC-generated letter SEC-generated letter

8-3-16 3-28-17
S-3/A S-1/A
Amended RS Amended RS
(3,478,935 resale and
conversion shares
plus $50 M shelf
registration)

8-3-16 3-28-17
Kesner letter to SEC Kesner letter to SEC

8-24-16 4-12-17
S-3/A SEC-generated letter
Amended RS

8-26-16 4-13-17
Stetson letter to SEC S-1/A
Amended RS

8-29-16 4-13-17
SEC Notice of Kesner letter to SEC

56
 Effectiveness (1 of 2 on this date)

4-13-17
Kesner letter to SEC
(2 of 2 on this date)

4-14-17
SEC Notice of
Effectiveness

All three of these Registration Statements are straight out of the Frost gang P&D
playbook. Gang members and associates obtained cheap and/or free shares and then registered
them with the SEC before the pump. Below is the trading chat for the COOL/PTE P&D. The
effective dates for the two approved RSs for the resale and conversion shares are marked in red.

We have seen that the Frost gang registered over 4.2 M resale and conversion shares
leading up to the COOL/PTE P&D. If the Frost gang members and associates sold these shares

57
at an average price of $15 (a conservative estimate based on the PTE trading chart), they made
over $60 million in illegal proceeds from the PTE P&D.

It is easily proven that Harvey Kesner lied to the SEC in order to register those shares.
Below is a snip from PTE’s 6-29-16 S-3/A. The snip (along with the footnotes in the document)
show that the following Frost gang members were registering shares for the P&D: Phillip Frost,
Mark Groussman, John Lemak, Barry Honig, Michael Brauser, Harvey Kesner, John Stetson and
John O’Rourke.

The same day (4-29-16) that the Form S-3/A was filed, Harvey Kesner sent a letter to
SEC staff regarding the RS. Here is a high-lighted snip from that letter.

58
 Kesner wrote to the SEC that, “each of the investors acted independently of the others.”
That is a blatant lie. It is well known that it is part of the Frost gang P&D playbook to act as an
undisclosed control group. ​SEC v Honig​ alleged that members of the Frost gang acted as
undisclosed control groups at BioZone, MGT and MabVax. Those allegations were supported
with detailed evidence, and the Frost gang members all chose to consent to judgments rather than
challenge the allegations and evidence. Various publications have touted Frost investing along
with Honig and other gang members at companies such as Vapor Corp, IDI, Pershing Gold and
others
With PolarityTE, the Frost gang even advertised its coordinated activities in an article in
a number of media outlets, including ​Forbes​ magazine.49 Here are some excerpts from that
Forbes​ article, dated August 8, 2017:

“Enter billionaire investor Philip Frost and his investment team. In the
biotech sector, and especially in small cap ventures, there is no bigger name than
Dr. Philip Frost. Across a career spanning over 40 years, ​Frost has built a net
worth over 4 billion dollars​, the vast majority of which derives from founding,
buying, selling and investing in biotechnology companies. Frost and his team are
well known for using a “reverse-merger” approach …”

“Since 2014 Frost, along with co-investor Barry Honig, have used the
reverse merger process multiple times with life science companies including
SciVac now VBI Vaccines, Inc. (NASDAQ:VBIV) and CoCrystal Pharma Inc.
(OTCBB:COCP).”

“Beyond control, launching a new biotech company through a public

merger immediately gives the company access to a whole new breed of investors
who move quickly and spread the story. As Lough recalls, “Frost and Honig
dropped a term sheet on us 24 hours after initiating discussions …”

49

https://www.forbes.com/sites/innovatorsdna/2017/08/08/polarityte-will-this-biotech-be-the-next-amazon-or
-tesla/#6c157f03363a

59
 SEC filings show that Frost gang members sold shares into the pump and dump.
Business writer Chris Carey has published detailed analyses of these transactions. Evidence
obtainable by the SEC and DOJ will confirm and enhance Carey’s summaries.

On April 30, 2020, PTE issued a press release in which they tacitly admitted that the
SkinTE story they used to hype the share price was bogus.
https://www.scribd.com/document/459521279/200502-Open-Letter-to-LEAs

The existence of a crime at PTE is clear. Frost gang members conspired to commit
another pump and dump securities fraud at COOL/PTE. They operated as an undisclosed control
group to gain control of the company and obtain cheap shares. Harvey Kesner lied to the SEC in
order to register the shares for sale. They created a fake story about SkinTE and used national
media to hype the stock. Then they dumped tens of millions of dollars of stock after the pump.

Now the share price has collapsed. The SkinTE story has collapsed, too. There is
enough publicly available evidence to convict Phillip Frost and numerous other Frost gang
members for criminal fraud. There is surely plenty of other evidence to support criminal
convictions. There are also plenty of witnesses who would trade their testimony for leniency.

On September 7, 2018, PTE announced that, "Following the SEC's announcement on

September 7, 2018 entitled, "​SEC Charges Microcap Fraudsters for Roles in Lucrative Market
Manipulation Schemes​," the Company immediately terminated Mr. Stetson."

On June 3, 2019, PTE announced that, "​Dr. Denver Lough … is on indefinite

administrative leave from the offices of Chief Executive Officer and Chief Research &
Development Officer."

On August 26, 2019, PTE announced that, "On ​August 21, 2019​, the Company and ​Dr.
Lough reached a settlement resolving ​Dr. Lough's demand and his status with the Company. The
following are the principal terms of the agreement … Dr. Lough resigned all of his offices with
the Company and from the Board of Directors, which was accepted by the Board of Directors
effective on August 26, 2019."

The DOJ has been investigating Frost gang members since at least 2014. All that is left is
for the DOJ agents to finally complete their job by indicting and convicting Phillip Frost, Barry
Honig, Harvey Kesner, Michael Brauser, and other members and associates of the Frost gang.

VI - 7 - Other Securities Frauds (within statute of limitations)

VI - 8 - Other Securities Frauds (outside statute of limitations)

VI - 9 - Bribery at BioZone / Cocrystal50

50
The original version of this section was posted online on May 20, 2020 at
https://www.scribd.com/document/462324297/Frost-Bribery-Charges-Letter-to-AUSA-1

60
 This section was written as a letter to the Assistant United States Attorney who
has been leading the DOJ investigation of the Frost gang since at least 2012.

Dear AUSA-1,51

Bribery of Public Officials and Witnesses (18 U.S.C. § 201) is the criminal statute that
prohibits bribery of witnesses in federal proceedings, including the proceedings of federal
agencies such as the SEC. The website for the Third Circuit Court of Appeals presents
fill-in-the-blank guidelines / jury instructions for prosecuting the crime of bribery.52 I have taken
the liberty of filling in the blanks for you in bold.

"6.18.201B3 Bribery of a Witness (18 U.S.C. §201(b)(3)) Count (​Three53) of the

indictment charges the defendant (​Phillip Frost​) with (​bribery of a witness​),
which is a violation of federal law. In order to find the defendant guilty of this
offense, you must find that the government proved each of the following three
elements beyond a reasonable doubt:

First: That (​Daniel Fisher​) was to be a witness under oath or affirmation at (​the
SEC investigation of a pump and dump securities fraud involving Phillip
Frost at BioZone Pharmaceuticals, Inc., and the resulting civil case of ​SEC v
Honig et al​ before​ ​the United States District Court for the Southern District
of​ ​New York; and the DOJ investigation concerning the same matters as the
SEC investigation​);

Second: That (​Phillip Frost​) (​gave​) something of value to (​Daniel Fisher​); and

Third: That (​Phillip Frost​) did this act corruptly, that is, with the intent to
influence (​Daniel Fisher's​) testimony."

Now I will help lay out some of the evidence.

1. Daniel Fisher filed a whistleblower complaint with the SEC for securities fraud at BioZone in
late 2011 or early 2012.54 The complaint names and describes the actions of Phillip Frost and
other members of the Frost gang.

51
​"AUSA-1" is the same name indicator I have used in previous documents for the same specific
Assistant United States Attorney. AUSA-1 has been investigating members of the Frost gang
since at least about 2012, and I have been in communication with AUSA-1 by email since 2014.
52
​https://www.ca3.uscourts.gov/sites/ca3/files/Chap%206%20Bribery.pdf
53
​Frost should be also charged with additional federal crimes, including securities fraud at
BioZone, securities fraud at PolarityTE, and securities frauds at other companies.
54
​SEC whistleblower complaint TCR1323473544112.

61
2. Fisher' whistleblower complaint says in part:
"The Frost group did not disclose the related party aspects of the
Aero/Baker Cummins transaction, which Complainant recently discovered.
On the weekend of May 17, 2011 and prior to May 19, 2011, Complainant
overhead a conversation between Barry Honig and Michael Brauser where
the parties stressed the importance of Honig to "keep up" the price of the
Registrant's price."

3. Those two sentences in Fisher's whistleblower complaint describe two key aspects of the
Frost gang's pump and dump securities frauds at BioZone: first, that members of the Frost gang
operated as an illegal undisclosed "control group"; and second, that the Frost gang illegally
manipulated the share price of BioZone stock.

4. After being fired from BioZone by the Frost gang, Fisher litigated against the Frost gang
from 2012 until September 2013 (the "Fisher Federal litigation"). Once this litigation reached a
settlement, the Frost gang began the initial trading phase of the BioZone pump and dump
securities fraud within a matter of weeks.

5. Fisher and the Frost gang began another round of litigation in 2014 (the "Garcia Properties
litigation").

6. From 2014 until late 2016, Dan Fisher and I (Lee Pederson) worked closely together to
investigate the securities frauds at BioZone, as well as Frost gang securities frauds at other
companies. Dan and I submitted the results of our investigations to the SEC Office of the
Whistleblower until that became obviously futile. Then, beginning in about 2015, we submitted
the results of our investigations directly to a number of specific individuals at the SEC, FBI and
United States Attorney's Office (including you, AUSA-1).

7. From 2014 to 2018, Fisher litigated against Frost, CoCrystal (the successor to BioZone), and
other persons and entities in California state court (the "Garcia Properties litigation"). The
"Fisher Federal litigation" against BioZone and Frost gang members also came back into play in
2017.

8. Many of the relevant events in the Frost bribery case are described in my second lawsuit
against Frost captioned "​Pederson v Frost et al​" and referred to herein as pvf2.55 The 71-page
complaint in pvf2 provides useful background, references, and additional information to the
present description of Phillip Frost's bribery of Dan Fisher. Excerpts from the complaint in pvf2
follow below.

9. Paragraph 81 of the pvf2 complaint says: After an initial meeting with attorney Chris Cella
55
​https://www.courtlistener.com/docket/15909397/pederson-v-frost/

62
on March 30, 2015, Fisher wrote to Cella:

"You said that criminals like these guys [the Frost gang] know it is cheaper to
litigate than pay legitimate debts. We need to transfer the pain. So far they have
been on the offense. You will find very few cases with the overwhelming
evidence that we have compiled. They will not settle until they feel extreme pain
and a risk for proceeding to depositions and a trial. We need a fair settlement,
payment of the taxes owed to the IRS (they are going after me for BioZone’s
taxes - $300K), and payment of our legal expenses. The last settlement with these
guys, for my 6,650,000 shares, they paid me $0.15 per share, and sold them very
quickly for an estimated $0.60 to $0.80/share. They will not get away with a
cheap settlement on this case. However, as you suggested about Barry’s nephew, I
don’t want prolonged litigation. They have more to lose than we do. They are
extremely cheap, hate to lose, facing criminal prosecution, and adverse PR. As the
case progresses, more of their criminal acts will be exposed which is
newsworthy." (045)

10. Paragraph 82 of the pvf2 complaint says: On April 6, 2015, Frost was served as a defendant
in the Garcia Properties litigation.

11. Paragraph 94 of the pvf2 complaint says: On or about September 31, 2015, a second
amended complaint was filed in Garcia Properties litigation after the deadline was almost
missed. (047) Frost and Opko were added as defendants.

12. Paragraph 95 of the pvf2 complaint says: On or about October 5, 2015, FBI-1 told Fisher
that the SEC was investigating the Frost gang.

13. Paragraph 96 of the pvf2 complaint says: On or about October 8, 2015, Fisher met with
agents of the SEC (SEC-1 and SEC-2) while under subpoena. Fisher then connected Pederson
with one of the SEC agents (SEC-1).

14. In October of 2015, the SEC served Cocrystal (fka BioZone) with a subpoena.

15. Frost was on the Board of Directors at Cocrystal when the SEC subpoena was served.

16. Paragraph 107 of the pvf2 complaint says (bold added): On or about December 7, 2015,
Fisher sent an email (with attachments) to agents at the DOJ and SEC [including you, AUSA-1],
labeling the Frost gang as "White Collar Terrorists." (027a, 027b) Fisher wrote in his email:

"The Frost Group is applying white collar terrorism against me as the

price for litigating against them and cooperating with the SEC and the FBI. Please
read this to see the Affidavit (Cocrystal Settlement Agreement) they are
demanding that I execute to avoid financial ruin. ​Signing this, which I will never
do, will seriously damage your investigation.​ …

"I sued them (attached) over an unpaid $295,000 promissory note. We are

63
 now offering to settle the lawsuit with them. Most of the terms can be worked out.
But, a major issue is that ​they insist that I recant my testimony, statements,
and documentary evidence relating to the Frost Group and the companies
that they invest. I have provided the SEC and FBI factual information. To
settle, they are demanding that I perjure myself by agreeing to execute an
Affidavit (Attachment A of the Settlement Agreement) recanting the
information provided by me. I informed them that I would not do this since
the information provided the SEC and FBI, to the best of my knowledge, is
accurate.​ I will never agree to recant 4 years of my investigation, Lee Pederson's
investigation, and the hard work of the SEC and FBI. However, Cocrystal (Frost
Group company), is threatening to foreclose against 580 Garcia (me) since I won't
agree to the Affidavit and the intentional fraudulent actions of the Frost Group
companies. …

"My attorney [Cella] has recommended that I should drop my litigation

ASAP and try to walk away from the Frost Group. However, the Frost Group will
not let me do this without them extorting $500K to $1MM and deeding the
property to them which will cost me over $1.5MM. The Frost Group's unchecked
financial terrorism will ruin me."

17. Paragraph 109 of the pvf2 complaints says: On December 23, 2015, Fisher received another
[SEC] subpoena about FrostZone.

18. Paragraph 117 of the pvf2 complaint says: Fisher's and Pederson's efforts to battle the Frost
gang were taking a serious toll on both men. Most weeks, each of them worked over 60 hours on
their battle. Both men were under financial strain, because they did not have time to pursue
normal employment. Though Fisher still had some of his $2 million settlement, he was paying
large legal bills each month. Both men were also under emotional strain. Fisher's wife Sharon
was also under severe emotional strain.

19. The complaint in pvf2 contains many more details about the settlement negotiations in the
Garcia Properties litigation. Also, it is certain that Dan Fisher has in his possession still further
documents and correspondence relating to the settlement and settlement negotiations, and that
such documents will incriminate Frost for bribery.

20. Paragraph 105 of the pvf2 complaint says (bold added): The late 2015 settlement
negotiations illustrate the dilemma Fisher faced in trying to resolve his issues with the Frost
gang.

a. After years of disputes, Fisher and his wife Sharon wanted resolution so they could move
forward with their lives.

b. ​The Frost gang wanted to continue with their frauds, which required covering up their
old frauds​, so they wanted resolution with Fisher, also.

64
c. Fisher's two main sources of leverage against the Frost gang were Fisher's collaboration with
Pederson, and Fisher's Garcia Properties litigation (which Pederson had salvaged).

d. ​The lack of law enforcement action against the Frost gang, and the possibility that the
Feds would never take any enforcement action, caused doubts for Fisher, for Fisher's
attorneys, and for others who might otherwise have been of assistance to Fisher's cause.

e. The Frost gang were worried about the threat Pederson posed to them, and they wanted to
undermine Pederson in any settlement with Fisher. …

21. Frost gang members continued their securities fraud operations into 2016 and beyond,
including an ambitious new pump and dump securities fraud at PolarityTE (PTE, fka COOL).

22. The continued lack of federal law enforcement action against Frost and other Frost gang
members further undermined Fisher's confidence that he could endure and eventually prevail in
his litigation against the Frost gang.

23. ​Fisher settled the Garcia Properties litigation against Frost and his gang in about
February of 2018. ​The SEC did not bring charges against members of the Frost gang until
September of 2018. The DOJ has still not brought any criminal charges against Frost or any
member of the Frost gang.

24. Frost was on the BOD of Cocrystal, and Frost controlled the BOD of Cocrystal at the time
of the Garcia Properties litigation settlement.

25. ​The settlement gave Fisher about $800,000 more than he was asking for in his lawsuit
against the Frost gang.

26. Paragraph 142 of the pvf2 complaint says: Pederson has not seen the settlement agreement
between Fisher, COCP, Frost and other Frost gang members, but the available evidence indicates
that the settlement agreement includes the following terms [bold added]:

a. ​Fisher agreed to withdraw his complaints to the SEC and DOJ about the Frost gang.

b. Fisher dropped his $295,000 claim against COCP.

c. Fisher paid off the Garcia Properties mortgage for about $1,176,000 less than he owed on it.

d. Fisher agreed to stop his collaborations with Pederson, including refraining from providing
documents and testimony in support of Pederson's claims against Frost and his gang.

e. Fisher agreed to stop communicating with Pederson.

27. Paragraph 143 of the pvf2 complaint says: The Frost gang and COCP used the elaborate
scheme of writing down the amount of the Fisher mortgage note to induce Fisher to settle his
litigation with the Frost gang and to thereby buy Fisher's silence.

65
 28. Paragraph 144 of the pvf2 complaint says: As a result of this settlement, Fisher was
unjustly enriched by about $800,000 at the expense of Pederson, and Frost misused about
$800,000 of COCP's assets for his own personal benefit.

29. Journalist Teri Buhl has reported56 that (bold added):

UPDATE 1-2019: Since publication of this article, I learned that ​Daniel Fisher,
the plaintiff in the Biozone lawsuit reference below, submitted a letter to the
SEC, through his attorney, withdrawing the SEC whistle-blower complaint
that Mr. Fisher filed against Barry Honig, Michael Brauser and The Frost
Group. In a separate letter from his attorney to the FBI, Mr. Fisher also
withdrew any direct connection to the FBI investigation referenced below.
Mr. Fisher sent the letters pursuant to a voluntary settlement agreement in the
Biozone lawsuit and an Order enforcing that settlement by Judge Laurel Beeler of
the Northern District of California which stated: “The court orders [Daniel Fisher]
to withdraw his FBI and SEC grievances against [Honig, Brauser and The Frost
Group]….which fall[s] within the scope of his commitment under the settlement.”
In a separate letter to Judge Beeler enclosing Mr. Fisher’s withdrawal letters, his
attorney stated: “[Mr. Fisher] does not believe this SEC notice has any impact on
the existing SEC investigation into [Biozone’s successor] Cocrystal.” In an SEC
filing made earlier this year, Cocrystal Discovery disclosed that it had received a
subpoena from the SEC in 2015 and that it was the subject of an ongoing SEC
investigation.

30. The SEC investigation of BioZone/Cocrystal began in 2015 and was ongoing at the time of
the 2018 bribery of Dan Fisher by Phillip Frost.

31. Frost was aware of the SEC investigation at BioZone/Cocrystal.

32. The SEC issued a subpoena to Mabvax Therapeutics in January of 2018, and the
investigation was ongoing at the time of the 2018 bribery of Dan Fisher.

33. Frost was aware of the SEC investigation at Mabvax.

34. The SEC filed ​SEC v Honig​ on September 7, 2018. ​SEC v Honig​ describes Frost's
involvement in the pump and dump securities frauds at both BioZone/
Cocrystal and Mabvax.

35. Frost consented to judgment in ​SEC v Honig​ in January of 2019, thereby agreeing to pay a
$5 million fine plus disgorgement and interest.

36. Frost is guilty of bribery under the federal criminal bribery statute, Bribery of a Witness (18
U.S.C. §201(b)(3)), which says (bold added):
56

https://www.teribuhl.com/2017/02/09/california-doj-investigating-honig-and-the-frost-group-2/

66
 (b)Whoever … (3) directly or indirectly, corruptly gives, offers, or promises
anything of value to any person, or offers or promises such person to give
anything of value to any other person or entity, with intent to influence the
testimony under oath or affirmation of such first-mentioned person as a witness
upon a trial, hearing, or other proceeding, before any court, any committee of
either House or both Houses of Congress, or any agency, commission, or officer
authorized by the laws of the United States to hear evidence or take testimony, or
with intent to influence such person to absent himself therefrom; … shall be fined
under this title or not more than three times the monetary equivalent of the thing
of value, whichever is greater, or ​imprisoned for not more than fifteen years​, or
both, and may be disqualified from holding any office of honor, trust, or profit
under the United States.

37. During the SEC investigation of the pump and dump securities fraud at BioZone, Daniel
Fisher was subpoenaed twice by the SEC.

38. During the SEC investigation of the securities fraud at BioZone, Daniel Fisher provided
factual and truthful information to the SEC and DOJ including a whistleblower complaint,
voluminous documentation, and sworn testimony under subpoena.

39. Daniel Fisher's whistleblower complaint to the SEC contained the following attestation by
Fisher:
"I declare under penalty of perjury under the laws of the United States that
the information contained in this submission is true, correct, and complete to
the best of my knowledge, information, and belief. I fully understand that I
may be subject to prosecution and ineligible for a whistleblower award if, in
my submission of information, my other dealings with the SEC, or my
dealings with another authority in connection with a related action, I
knowingly and willfully make any false, fictitious, or fraudulent statements
or representations, or use any false writing or document knowing that the
writing or document contains any false, fictitious, or fraudulent statement or
entry."

40. In Dan Fisher's own words, Phillip Frost and his gang insisted that Fisher perjure himself as
a condition of settlement in the Garcia Properties litigation (see paragraph 16 above).

67
41. ​In the February 2018 settlement agreement of the Garcia Properties litigation, Daniel
Fisher accepted an indirect $800,000 payment from Phillip Frost to withdraw Fisher's
legitimate and factual complaints to the SEC and DOJ about Frost's securities frauds.

The case against billionaire fraudster Phillip Frost for the bribery of Dan Fisher is already
cut-and-dried. I suggest that your next steps, if you have not already done so, should include:

A: Obtaining all documents and correspondence from 2015-2018 relating to the negotiation and
settlement of Daniel Fisher's Garcia Properties litigation against the Frost gang. Potential
sources of such documents include, but are not limited to, all the individuals named in section B
below;

B: Interviewing all individuals with possible knowledge of the bribery scheme, including but
not limited to:
(1) Phillip Frost;
(2) Steve Rubin (Cocrystal board member);
(3) Jane Hsiao (former Cocrystal board member);
(4) Roger Kornberg (Cocrystal board member);
(5) all other current and former Cocrystal board members from 2015 to the present;
(6) all current and former Cocrystal officers from 2015 to the present;
(7) Harvey Kesner (Frost gang lawyer);
(8) Barry Honig (Frost gang member);
(9) Michael Brauser (Frost gang member);
(10) Daniel Fisher;
(11) Chris Cella (attorney for Dan Fisher); and
(12) Brian Keller (participant in the BioZone pump and dump securities fraud).
I note that the same set of facts cited in this letter may also result in a criminal charge
against Frost for Obstruction of Justice by Means of Bribery (18 U.S. Code § 1510). Such an
obstruction charge carries a maximum five-year prison sentence.
I further note that the bribery of Daniel Fisher by Phillip Frost was complete in February
of 2018, and that there is a five-year statute of limitations for both bribery and obstruction of
justice.

Signed,

/Lee Pederson/

Cc/bcc:
Dan Fisher (c/o attorney Vytas Rimas)
DOJ and SEC agents (bcc)
SEC OIG
Phillip Frost (c/o attorney Joe Dixon)
Journalists and business writers (bcc)
Other interested persons
Posted online at scribd.com

68
VI - 10 - Possible Bribery at MabVax

VI - 11: Obstruction of Justice at BioZone / Cocrystal

The events described in section VI - 9 may also comprise the crime of obstruction of
justice.

VI - 12: Witness Tampering atBioZone / Cocrystal

The events described in section VI - 9 may also comprise the crime of witness tampering.

VI - 13: Wire Fraud

Eact of the securities fraud crimes also comprises the crime of wire fraud.

SECTION VII - Hypothesis that Frost illegally sold OPK and TEVA
short on the Tel Aviv Stock Exchange (TASE)

Billionaire Phillip Frost was the chairman of the board at Teva Pharmaceutical Industries
(TEVA) from 2010 until late 2014. Frost resigned from the TEVA BOD in early 2015. TEVA
is the largest public company in Israel.57 TEVA’s revenues are more than four times as much as
the second-ranked Israeli company. TEVA’s market cap is the second most, even after an 85%
decline since 2015. Here is TEVA’s trading chart for the last 10 years:

57
​https://en.wikipedia.org/wiki/List_of_largest_companies_in_Israel

69
 Frost was on the BOD of Northrop Grumman (NOC) from 1996-2009. NOC is the fifth
largest defense contractor in the world.58 Frost has been the chairman and CEO of Opko Health
(OPK) since 2007. Frost was the chairman at LadenburgThalmann (LTS) until 2018. Frost’s
other business and philanthropic activities are well known.59

Barry Honig and Michael Brauser are notorious serial fraudsters. The have committed
securities frauds at numerous companies over the past decade. They have built a corrupt stock
manipulation network (SMN) of paid pumpers, inside traders, analysts, broker/dealers, attorneys,
accountants, corporate officers, corporate directors, transfer agents, and others.

Frost has participated in multiple securities frauds with Brauser and Honig.60 Their
BioZone (BZNE) P&D securities fraud began in early 2011 with the fraudulent takeover of
BioZone Laboratories. At the time, Frost was near the peak of his wealth and power. Why did
Frost want to get mixed up with Honig and Brauser? Why would Frost commit criminal acts to
make a few million dollars when he was already worth billions?

Here is OPK’s trading chart for the last 10 years:

58
​https://en.wikipedia.org/wiki/List_of_defense_contractors
59
​https://en.wikipedia.org/wiki/Phillip_Frost
60
​https://www.sec.gov/litigation/complaints/2019/comp24431.pdf

70
 It can be seen from the TEVA and OPK charts that both companies experienced market
share price declines of about 85% from their mid-2015 peaks until the present. With OPK, the
decline represents about $8 billion in lost market cap. With TEVA, the 85% decline represents
over $50 billion in lost market cap. Both OPK and TEVA are traded on the Tel Aviv Stock
Exchange (TASE) as well as on US exchanges. There was clearly an opportunity to profit from
short selling both OPK and TEVA from 2015 until the present in both the US and Israel..

In addition to the above, we also know:

1- Honig and Brauser built a corrupt stock manipulation network (SMN).
2- Frost used that stock manipulation network (SMN) to participate in securities
frauds at BZNE and other companies, including MabVax (MBVX) and PolarityTE (PTE).
3- The SMN was used to pump up OPK’s share price before its 2015 peak.61
4- The SMN has been used to push Frost gang company stock prices down to enable
illegal profits from short selling.62
5- On December 22, 2016, the DOJ announced that TEVA had agreed to pay $519
million to settle charges relating to alleged Foreign Corrupt Practices Act (FCRP) violations.63
These charges date from Frost’s time at TEVA.

61
See ​SEC v Honig​ and
http://sharesleuth.com/investigations/2018/03/pretenders-and-ghosts-stealth-promotion-network-exploits-f
inancial-sites-to-tout-stocks
62
​https://www.scribd.com/document/429644254/191010-Frost-as-an-OPK-Short-Seller-Hypothesis
63

https://www.justice.gov/opa/pr/teva-pharmaceutical-industries-ltd-agrees-pay-more-283-million-resolve-for
eign-corrupt

71
 6- TEVA has recently settled multiple Medicaid fraud charges.64 These charges date
from Frost’s time at TEVA.

Other factors may have been in play for Frost:

7- Frost may have felt immune from SEC enforcement because he had connections
within the SEC.
8- Frost may have felt immune from DOJ prosecution because of the DOJ’s lack of
criminal prosecutions after the mortgage bubble collapse.65
9- Frost could not have built his own special purpose SMN just for OPK and TEVA,
so he had to accept and participate in numerous smaller frauds with Honig and Brauser in order
to use their SMN for his own purposes.
10- Frost may have known of inside information at TEVA (e.g. FCPA investigation)
that would result in a decline of TEVA’s share price.
11- Frost knew of inside information on OPK, and could control the dissemination of
information that would result in the decline of OPK’s share price.
12- By short-selling on the TASE, Frost could hide his operation and his profits from
US regulators.

So which is more likely?

A- Phillip Frost associated himself with Barry Honig and Michael Brauser to make a few
million dollars at the risk of public humiliation and criminal penalties.
B- Phillip Frost associated himself with Barry Honig and Michael Brauser to use their SMN to
make hundreds of millions, or even billions, of dollars of hidden profits from short selling
companies where Frost had control and/or inside information.

Note: For a description on how I developed my hypothesis of Frost as a short seller of

OPK and TEVA, see “Frost as an OPK Short-Seller Hypothesis” from October 10, 2019:
https://www.scribd.com/document/429644254/191010-Frost-as-an-OPK-Short-Seller-Hypothesi
s

SECTION VIII - Further reading and links

1- “Opko Health: The Placebo Effect” by Lakewood Capital Management, December 2013.
http://www.lakewoodlp.com/Opko_Health_The_Placebo_Effect.pdf
Seminal short seller report on OPK.
2- “PolarityTE: Will this Biotech be the next Amazon or Tesla?” by Jeff Dyer in Forbes,
August 8, 2017.

64
E.g., see
https://news.bloomberglaw.com/health-law-and-business/teva-pays-135m-to-settle-illinois-medicaid-drug-
price-case​ and
https://www.prnewswire.com/news-releases/teva-pharmaceuticals-agrees-to-pay-54-million-to-settle-shep
herd-finkelman-miller--shah-llp-false-claims-act-qui-tam-case-300981936.html
65
​https://www.amazon.com/Chickenshit-Club-Department-Prosecute-Executives/dp/1501121367

72
https://www.forbes.com/sites/innovatorsdna/2017/08/08/polarityte-will-this-biotech-be-the-next-
amazon-or-tesla/#ae5f40f363a5
Pump story by PTE insider.
3- “A Look into Billionaire Dr. Phillip Frost’s Risky Biotech Portfolio” by Mark Terry on
Biospace.com, January 4, 2017.
https://www.biospace.com/article/a-look-into-billionaire-b-dr-phillip-frost-s-b-risky-biotech-port
folio-/

4- “Meet Miami’s Renaissance Billionaire” by Matt Schifrin in Forbes, January 3, 2017.

https://www.forbes.com/sites/schifrin/2017/01/03/meet-miamis-renaissance-billionaire/#21beec3
7306b
“​it is precisely his meticulous attention to seemingly mundane details--like those many varieties
of palm trees--that underlies his uncanny ability to spot and capitalize on opportunities.”

5- “Pretenders and Ghosts” article by Chris Carey describing the Frost gang’s network of paid
pumpers.
http://sharesleuth.com/investigations/2018/03/pretenders-and-ghosts-stealth-promotion-network-
exploits-financial-sites-to-tout-stocks

6- SEC press release announcing charges against a network of stock pumpers similar to the Frost
gang network of paid pumpers, April 10, 2017:
https://www.sec.gov/news/press-release/2017-79

7- “Investor Who Rode Pivot From Biotech to Bitcoin Sells Big Stake” article by Ianthe Jeanne
Dugan in the ​WSJ​, January 31, 2018. Describes some of Barry Honig’s business history, and
Honig’s sale of RIOT shares.
https://www.wsj.com/articles/investor-who-rode-pivot-from-biotech-to-bitcoin-sells-big-stake-15
17403600

8-

-- Publicity and news coverage regarding Frost gang civil litigation

​ as filed
-- High-profile corporate resignations after ​SEC v Honig w
-- Some coverage of the Frost gang by mainstream media66

SECTION IX - Barry Honig’s fraud networks and operations

separate from the Frost gang
(See Section III.2.C for Honig’s profile as a Frost gang member.)

SECTION X - Other related networks

These sections have been moved to a separate Team Honig Report.

66
​https://finance.yahoo.com/news/federal-criminal-probe-launched-connection-193529856.html​ (May 22,
2019 article by Jennifer Schlessinger of CNBC)

73
 In ​SEC v Honig​, the SEC described Honig as the “primary strategist” of the Frost gang’s
P&D operations. In addition to doing stock frauds in association with Phillip Frost, Honig also
has associated with other groups involved in suspicious activities. One such group included
Joseph Noel, Imran Husain, Gregg Jaclin and David Zazoff.67 Another Honig group includes
Andy and Catherine Defrancesco, Michael Serruya and Brady Cobb.68 Yet another involves
investment banking and brokerage firm Laidlaw & Co.69 Other of Honig’s fraudulent
associations may be lost in the sands of time. Honig is a congenitally prolific fraudster.
Barry Honig is a central member of the Frost gang. Honig has led many securities frauds,
both with and without Frost’s involvement. Honig’s frauds can be placed into three categories
vis a vis Frost. (1) Frauds where Frost actively and publicly participated. These include
BioZone, MBVX, OPK, PTE, TWER, VPCO, and others. In these frauds, Honig operates as the
“chief strategist.” (2) Frauds where Frost facilitates the fraud behind the scenes, but does not
take an active public role. (3) Frauds in which Frost does not appear to play any role. The
Team Honig Report is intended to address Honig’s frauds that fall into the second and third
categories.
Honig’s “category 3” frauds have been done with at least two separate groups. The first
group includes David Zazoff, Gregg Jaclin, Imran Husein, and Joseph Noel. This group
conducted a P&D at YesDTC which resulted in both criminal convictions by the DOJ and civil
judgments in favor of the SEC. The second group includes Andy Defrancesco, Catherine
Defrancesco, Brady Cobb and Michael Serruya. This second group has committed securities
frauds at cannabis companies AWSM and SOL, among others.

Journalist Teri Buhl has extensively chronicled Barry Honig, and her work is often cited
in the other sections of this Report. Rather than summarize or restate her reporting on Honig’s
frauds that do not involve Frost, I refer the reader to her stories posted at teribuhl.com and
provide the following brief notes as a guide.

2- YesDTC
A- The Joseph Noel plea agreement of June 2014 can be seen at:
https://www.scribd.com/doc/313912773/Joe-Noel-DOJ-Plea-Agreement-June-2014
+Barry Honig, +David Zazoff

3- Laidlaw & Company

67

https://www.teribuhl.com/2016/05/26/microcap-attorney-jaclins-co-conspirator-turned-doj-witness-in-shell-
factory-scheme/​ (Teri Buhl article)

68

http://www.teribuhl.com/2019/09/04/andy-defrancesco-quits-sol-global-top-job-after-bad-press-weighs-on-
stock-price-sol-cn-solcf/​ (Teri Buhl article)
69

http://www.teribuhl.com/2019/09/25/barry-honig-secretly-funded-underwriting-in-his-laidlaw-co-deals-trpx/
(Teri Buhl article)

74
4- TRPX
+Laidlaw

SECTION XI - Investigating the Frost gang

1- “Opko Health: The Placebo Effect” is the seminal piece of Frost gang investigative
reporting. This 46-page “short seller report” was published in December 2013 by Lakewood
capital management.
http://www.lakewoodlp.com/Opko_Health_The_Placebo_Effect.pdf

2- Journalists
A- Teri Buhl (independent journalist at teribuhl.com)

B- Bill Alpert (​Barron’s​)

C- Jennifer Schlessinger / Scott Zamost (CNBC)

D- Michelle Caruso-Cabrera (CNBC)

“CNBC Investigates Riot Blockchain” video report. Feb 16, 2018.
https://www.cnbc.com/video/2018/02/16/cnbc-investigates-riot-blockchain.html

3- Business writers / short seller report writers

A- Chris Carey (aka Sharesleuth)

B- Hindenburg Research (Nate Anderson)

C- Chris Drose (Bleecker Street Research)

+TRXC,70 +PGLC, +CDXC

D- Unemon

E- Quintessential Capital Management

F- Mox Reports (Richard Pearson)

G- White Diamond Research

H- Muddy Waters Research (Carson Block)

I- Research Noir

5- Investor/scientists who comment on Twitter

70

https://web.archive.org/web/20190708161907/http://bleeckerstreetresearch.com/2016/02/transenterix-wat
ch-for-a-60-crash-after-stock-promotion-and-disappointing-sales/

75
 A- Ozgur Ogut

B- Adrian Heilbut

C- @langerhans

D- @MidwestHedgie

6- Twitter fraudbusters
Twitter has emerged as a space where information and opinions about the Frost gang is
shared by real people with real identities. The Twitter crowd includes journalists, business
writers, lawyers, investors and scientists. Information on Twitter includes links to new
investigative reports, court documents, SEC filings, commentaries and analyses. It also allows
for the sharing of information with visual impact and humor.

7- Federal agents
A- Nancy Brown

8- Other social media

A. Glassdoor

76
 B- Even the message boards, once the secure domain of Frost gang pumpers, have
changed in tone. Here is a recent exemplary snip from the Yahoo message board for OPK:

C- Random stuff
Kesner Honig youtube video.
https://www.youtube.com/watch?v=CrCpLJ5dZYE

SECTION XII - The Frost gang’s “Short and Distort” narrative

Frost gang members and associates have sometimes attempted to deflect attention away
from their P&D securities frauds and other frauds by alleging that short sellers are engaging in
“short and distort” (S&D) securities frauds. Two instances are described below: PolarityTE
(PTE) and ​Kesner v Barron’s​.
The Frost gang short and distort narrative is not unique as a corporate approach to attack
critics when the critics publicize evidence that a company is overvalued. While the short and
distort theory has a basis in reality, including recent charges brought by the SEC,71 the Frost
gang’s use of the narrative is only a lame attempt to cover up real securities frauds.

Joshua Mitts, a professor at Columbia Law School, is a chief proponent of the S&D
theory. He has published an online article that has been modified several times. The most recent
version of Mitts’ S&D article (February 13, 2020) can be seen at:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3198384

71
​https://www.sec.gov/news/press-release/2018-190​ “​SEC Charges Hedge Fund Adviser With
Short-and-Distort Scheme”

77
 Mitts has served as an expert witness in court cases asserting the S&D theory. Such
cases include Burford Capital and Farmland Partners. I am not aware of any information that
connects Mitts with any Frost gang members or companies. However, it is possible that Barry
Honig is aware of Mitts’ theoretical work, since Honig’s former attorney Perrie Weiner is clearly
aware of Mitts.

Mitts’ ​Farmland v Rota Fortuna c​ ase is mentioned at:

https://www.marketwatch.com/press-release/farmland-partners-files-lawsuit-against-rota-fortuna
e-and-co-conspirators-for-short-and-distort-attack-2018-07-24

Another S&D case is mentioned at:

United Health v White Diamond, Sonja Colberg, ...
https://www.sec.gov/Archives/edgar/data/1096938/000147793219005777/ueec_8k.htm

1- S&D allegations at PTE

This situation is described in Section IV - 2 - B.

2- S&D allegations in ​Kesner v Barron’s

This situation is described in Section III - 25.

SECTION XIII - The current regulatory and enforcement environment

SUMMARY AND CONCLUSION

Very few of the lawsuits and investigations outlined in Section III above have been
resolved completely. In fact, we are still at a stage where new information is rapidly being
developed through several channels, including discovery in litigation, federal investigations,

78
media reports, and corporate SEC disclosures. The likely upshot is that there will be new and
continuing Frost gang litigation and enforcement actions for the foreseeable future. Since the
Frost gang companies were mostly designed as vehicles for P&D securities frauds and not
primarily to become profitable operating companies, the financial condition and share price of
the Frost gang companies is likely to generally decline, which will become apparent from SEC
filings. As time goes by, more truths behind the frauds and crimes of Phillip Frost and the Frost
gang will inevitably be revealed.

+++++++++++++++++++++++++++++++++

Appendix to Frost gang Report

Part 1- Frost gang time line

2009 - 2011 YesDTC P&D

2011 Fraudulent takeover of BioZone
July 2012 Fisher v BioZone​ filed
September 2013 initial BZNE P&D starts
2014 Plea documents in YesDTC P&D (sealed at the time)
2014 Fraudulent takeover of MabVax
November 8, 2016 “​California DOJ investigating Honig and The Frost Group”
by Teri Buhl
2017-2018 initial COOL/PTE P&D
November 2017 Pederson v Frost I ​initiated by pocket service on Brian Keller
February 16, 2018 Riot Blockchain video report on CNBC
September 7, 2018 SEC v Honig​ filed
January 2019 Frost consents to judgment in ​SEC v Honig

Part 2- List of Frost gang companies named as parties in litigation involving alleged fraud
BioZone Pharmaceuticals (BZNE)
Fisher v BioZone
Pepe v CoCrystal ​(BZNE/COCP class action)
CoCrystal Pharma (COCP)
Fisher v BioZone
Garcia Properties litigation
Pederson v Frost I
Pederson v Frost II
Pepe v CoCrystal ​(BZNE/COCP class action)
MabVax Therapeutics (MBVX)
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
MGT Capital (MGTI)
Oh v MGT Capital​ (MGTI class action)

79
 Opko Health (OPK)
SEC v Honig
Pederson v Frost I
Steinberg v Opko ​(OPK class action)
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Wendt v Frost
PolarityTE (PTE)
In re PolarityTE Inc. Securities Litigation ​(PTE class action)

Riot Blockchain (RIOT)

Takata v Riot Blockchain (​ RIOT class action)

Part 3- List of Frost gang members and associates named as parties in litigation involving
alleged fraud
Robert Baron
Wendt v Frost
Michael Brauser
Fisher v BioZone
SEC v Honig
Pepe v CoCrystal ​(BZNE/COCP class action)
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Wendt v Frost
Michael Beeghley
Takata v Riot Blockchain (​ RIOT class action)
Mike Dai
Takata v Riot Blockchain (​ RIOT class action)
Curtis Dale
Pepe v CoCrystal ​(BZNE/COCP class action)
Catherine Defrancesco
Takata v Riot Blockchain (​ RIOT class action)
Robert Fishel
Wendt v Frost
John H. Ford
SEC v Honig
Pepe v CoCrystal ​(BZNE/COCP class action)
MabVax v Honig
Phillip Frost
Fisher v BioZone
SEC v Honig
Pederson v Frost I
Pederson v Frost II
Steinberg v Opko ​(OPK class action)
Pepe v CoCrystal ​(BZNE/COCP class action)

80
Mark Groussman
SEC v Honig
Pepe v CoCrystal ​(BZNE/COCP class action)
Takata v Riot Blockchain (​ RIOT class action)
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Andrew Haag
MabVax v Honig
Robert Haag
MabVax v Honig
Barry Honig
Fisher v BioZone
SEC v Honig
Pepe v CoCrystal ​(BZNE/COCP class action)
Takata v Riot Blockchain (​ RIOT class action)
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Wendt v Frost
Jane Hsiao
Wendt v Frost
Andrew Kaplan
Takata v Riot Blockchain (​ RIOT class action)
Brian Keller
Fisher v BioZone
SEC v Honig
Pederson v Frost I
Pepe v CoCrystal ​(BZNE/COCP class action)
Harvey Kesner
Kesner v Barron’s
MabVax v Sichenzia
Kesner v Baker Botts
Wendt v Frost
Richard Krasno
Wendt v Frost
Robert Ladd
SEC v Honig
Oh v MGT Capital​ (MGTI class action)
Richard Lerner
Wendt v Frost
Jason Les
Takata v Riot Blockchain (​ RIOT class action)
Adam Logal
Steinberg v Opko ​(OPK class action)
Wendt v Frost
Denver Lough
In re PolarityTE Inc. Securities Litigation ​(PTE class action)

81
James Martin
Pepe v CoCrystal ​(BZNE/COCP class action)
Elliot Maza
Fisher v BioZone
Garcia Properties litigation
SEC v Honig
Pepe v CoCrystal ​(BZNE/COCP class action)
Jeffrey Meckler
Pepe v CoCrystal ​(BZNE/COCP class action)
Jeffrey G. McGonegal
Takata v Riot Blockchain (​ RIOT class action)
Gerald McGuire
Pepe v CoCrystal ​(BZNE/COCP class action)
John O’Rourke III
SEC v Honig
Pepe v CoCrystal ​(BZNE/COCP class action)
Takata v Riot Blockchain (​ RIOT class action)
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Wendt v Frost
John Paganelli
Wendt v Frost
Richard Pfenniger
Wendt v Frost
Robert Prag
MabVax v Honig
Roberto Prego-Novo
Fisher v BioZone
Garcia Properties litigation
Juan Rodriguez
Steinberg v Opko ​(OPK class action)
Wendt v Frost
Steve Rubin
MabVax v Honig
Wendt v Frost
Eric So
Takata v Riot Blockchain (​ RIOT class action)
John Stetson
SEC v Honig
Pepe v CoCrystal ​(BZNE/COCP class action)
In re PolarityTE Inc. Securities Litigation ​(PTE class action)
Takata v Riot Blockchain (​ RIOT class action)
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Gary Wilcox

82
 Pepe v CoCrystal ​(BZNE/COCP class action)
Alice Lin-Tsing Yu

Part 4- List of Frost gang entities named as parties in litigation involving alleged fraud
Alpha Capital Anstalt
SEC v Honig
MabVax v Honig
ATG Capital
SEC v Honig
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Brauser Honig Frost Group
Fisher v BioZone
Frost Gamma Investments Trust (Frost)
SEC v Honig
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Wendt v Frost
Grander Holdings
SEC v Honig
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
GRQ Consultants (Honig)
SEC v Honig
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
HS Contrarian Investments (Honig, Stetson)
SEC v Honig
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
IRTH Communications
MabVax v Honig
Melechdavid
SEC v Honig
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Sichenzia law firm
MabVax v Sichenzia
Southern Biotech (Frost, Honig, Brauser)
SEC v Honig
MabVax v Honig
In re MabVax Therapeutics Securities Litigation ​(MBVX class action)
Wendt v Frost
Stetson Capital Investments
Fisher v BioZone

83
 The Del Mar Consulting Group
MabVax v Honig
The Frost Group LLC
Fisher v BioZone

Part 5- Attorneys litigating against Frost gang members, associates, companies and entities

In re MabVax Therapeutics Securities Litigation ​(MBVX class action)

Robert Prongay
Glancy Prongay & Murray
info@glancylaw.com

In re PolarityTE Inc. Securities Litigation ​(PTE class action)

Jon V. Harper
jharper@jonharperlaw.com

Kesner v Baker Botts

Baker Botts
brian.lee@bakerbotts.com

MabVax v Honig
Baker Botts
brian.lee@bakerbotts.com

MabVax v Sichenzia
Block & Leviton

Oh v MGT Capital​ (MGTI class action)

Levi & Korsinsky

Pepe v CoCrystal ​(BZNE/COCP class action)

Rosen Law Firm
Laurence M Rosen
lrosen@rosenlegal.com

SEC v Honig
Nancy Brown
brownn@sec.gov

Steinberg v Opko ​(OPK class action)

Rosen Law Firm
Laurence M Rosen
lrosen@rosenlegal.com

84
Takata v Riot Blockchain (​ RIOT class action)
Joseph J. DePalma
Lite DePalma Greenberg
jdepalma@litedepalma.com

Wendt v Frost
Emily Cornelia Komlossy

85